Abbreviated Company Accounts - UNIQUE STOVE PRODUCTS 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 comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & machinery - 25% reducing balance
Office equipment - 33% Straight line

Intangible assets amortisation policy
The intangible fixed asset in the year relates to the costs of developing a new website which is being amortised over its useful economic life which has been estimated at 48 months.

Other accounting policies
Going concern

The company is in the process of introducing a new product to the market which has resulted in the loss in the year. The directors believe that turnover will increase and the company will become profitable in future years.

The company enjoys the financial support of its shareholders and is expected to continue to do so in the future. For these reasons, the going concern basis is considered to be appropriate.

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.