Abbreviated Company Accounts - LOCH KEN HOLIDAY CENTRE LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

Turnover policy
Turnover represents the total invoice value, excluding value added tax, of sales made during year.

Tangible assets depreciation policy
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 buildings - nil
Plant and machinery - 20% reducing balance
Caravans - 15% reducing balance
Freehold Property is not depreciated because the directors are of the opinion that the realisable value would be greater than historical cost.
The Company's policy is not to adopt a revaluation policy in respect of property.

Valuation information and policy
Stock is valued at the lower of cost and net realisable value.

Other accounting policies
Hire purchase commitments
Assets obtained under hire purchase contracts are capitalised as tangible assets and depreciated over their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.