Abbreviated Company Accounts - SQUIRE OF SCARBOROUGH 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 turnover shown in the profit and loss account represents the total invoice value, excluding value added tax, of sales made during the year. Sales are recognised in the profit and loss account on despatch of goods and completion of work.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost or valuation less residual value of each asset over its expected useful life, as follows:

Land and buildings - 2% straight line basis
Plant and machinery - 10%/25% straight line basis
Fixtures, fittings and equipment - 10%/25% straight line basis
Motor vehicles - 20% straight line basis

Valuation information and policy
Stock and work in progress
Stock and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Other accounting policies
Investment property
In accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), the investment property is revalued annually to open market value and the aggregate surplus or deficit is transferred to a revaluation reserve. No depreciation is provided in respect of the investment property which is a departure from the requirements of the Companies Act 2006 which requires all properties to be depreciated. The directors consider however, that this accounting policy results in the accounts giving a true and fair view. Depreciation is only one of many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.
Deferred taxation
Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax, with the following exceptions:
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

The company has also authorised 1,000 preference shares with a value of £1 each (non equity interest) of which none have been allotted, called up or fully paid.