Abbreviated Company Accounts - L & H DECORATORS 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
The revenue shown in the Income Statement represents the amounts invoiced during the year excluding Value Added Tax.

Tangible assets depreciation policy
Depreciation is provided on the cost of tangible fixed assets, in order to write off such cost after taking account of residual values over the expected useful lives as follows:
- Office Equipment - 20% Reducing Balance
- Motor Vehicles – 20% Reducing Balance

Other accounting policies
Inventory – Inventories have been stated at the lower of cost and net realisable value including those costs that have been incurred in bringing the inventory to its current location and condition.
Corporation Taxation - There is a provision for Corporation Tax for the year based upon the taxable profits at a rate of 20% as applicable to small company profits. No provision is considered necessary for Deferred Taxation.
Cash Flow Statement - The directors have elected to take advantage of the exemption in FRS Number 1 from the requirement to produce a cash flow statement on the grounds that the company qualifies as small under the Companies Act 2006.