Abbreviated Company Accounts - ARENA ONLINE 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 amounts receivable for goods and services, net of VAT and trade.

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

Motor vehicles - 33% and 20% straight line
Office equipment - 25% straight line
Plant and machinery - 25% straight line

Intangible assets amortisation policy
Goodwill and amortisation:
Positive goodwill, representing the excess of the fair value of the purchase consideration over the fair value of the separable net assets acquired, is capitalised. The Directors carry out annual impairment reviews, having regard for the useful economic life of the asset. Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 10 years.

Research and development:
Web research expenditure is written off to the profit and loss account in the year in which it is incurred. Web development expenditure is written off in the same way unless the Directors are satisfied as to the technical, commercial and financial viabilities of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit, which has been estimated as 5 years.

Valuation information and policy
NA

Other accounting policies
Stock:
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Leases:
Operating lease rentals are charged to the profit and loss account in equal instalments over the lease term.

Foreign currencies:
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.

4Fixed assets Investments
Fixed asset investments are stated at cost less provision for diminution in value.