Abbreviated Company Accounts - HIGHTOWN ENTERPRISES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts are prepared under the historical cost convention and comply with financial reporting standards of the Financial Reporting Council.

Turnover policy
Turnover is measured at the fair value of the consideration receivable and represents amounts receivable for goods and services provided in the normal course of business, net of rebates, discounts and value added tax. The company's policy is to recognise a sale when cash is received.

Tangible assets depreciation policy
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Land and buildings - Nil

Other accounting policies
Stock
Stock is valued at the lower of cost and net realisable value. Cost is defined as that expenditure which has been incurred in bringing the product/service to its present location and condition. Net realisable value is based on normal selling price, less further costs expected to be incurred to completion and disposal.

Taxation
The yearly charge for taxation is based on the profit for the year and is calculated with reference to the tax rates applying at the balance sheet date.

Going concern
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future having funds to meet obligations as they fall due.

As a result of the ongoing economic crisis and its particular impact on the property sector, the company has reported losses during the period. The director considers that the outlook for the property sector will remain challenging for some time to come, with significant constraints upon sales, lettings and rentals. These circumstances create material uncertainty over future profitability and cash flow.

The director has concluded that the combination of these circumstances represents a material uncertainty that casts significant doubt upon the company's ability to continue as a going concern. Nevertheless, after making enquiries and considering the uncertainties described above, the director has a reasonable expectation that the company will have adequate resources to continue in operation existence for the foreseeable future. For these reasons, he continues to adopt the going concern basis in preparing the financial statements.