Abbreviated Company Accounts - CHRISTCHURCH TIMBER & TRADING LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention modified to include the revaluation of freehold land and buildings and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements are prepared on the going concern basis. The use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.

Turnover policy
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

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

Land and buildings (freehold) - 2% on cost
Land and buildings (leasehold) - over the remaining period of the lease
Plant and machinery - 15% reducing balance
Computer equipment - 20% on cost
Motor vehicles - 25% reducing balance

Other accounting policies
Current asset investments are stated at the lower of cost and net realisable value.

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

The company operates a defined contribution pension scheme. Contributions payable to the company's scheme are charged to the profit and loss account in the period to which they relate.

Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes.