Abbreviated Company Accounts - MORENO WINE IMPORTERS COMPANY 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 the 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:
Plant and machinery - 15% reducing balance
Fixtures, fittings and equipment - 25% reducing balance
Motor vehicles - 25% reducing balance

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

Other accounting policies
Research and development
Research expenditure is written off to the profit and loss account in the year in which it is incurred.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Profit and Loss account.

Deferred taxation
Provision is made for deferred tax using the liability method to take account of timing differences between the incidence of income and expenditure for taxation and accounting purposes except to the extent that a liability to taxation is unlikely to materialise.

Related party transactions
Administrative expenses include rent of £9,204 (2014 - £9,201) payable to Mr M. Moreno, the sole director and majority shareholder.

Going concern
The Financial statements have been prepared on a going concern basis. The directors believe that the company will continue to be in operational existence in the foreseeable future with their financial support.