Abbreviated Company Accounts - GRACEFUL GARDENS (HEVER) 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.

The company relies on an overdraft facility and the support of its parent company to provide day to day working capital. As there is no indication that this support will be withdrawn, the director considers it appropriate to prepare the accounts on the basis that the company is a going concern.

Turnover policy
Turnover, which is shown net of VAT, represents amounts receivable for the company's landscaping services which are billed upon completion of each project or stage of a project.

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

Land and buildings freehold - 2% straight line
Plant and machinery - 10% straight line
Computer equipment - 25% straight line
Fixtures, fittings & equipment - 15% straight line
Motor vehicles - 20% straight line

Other accounting policies
Leasing and hire purchase commitments - Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors neet of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Stock and work in progress - Stock comprises plants and other nursery supplies used in the company's principal activity. Stock is valued at the lower of cost and net realisable value.

Deferred taxation - 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. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. The deferred tax balance has not been discounted.