Abbreviated Company Accounts - SWANWELL PROPERTY LTD

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 income from property in the United Kingdom and excludes sales of goods.

Tangible assets depreciation policy
No amortisation has been provided on the company's freehold investment property, which has been included in the accounts at cost.

Other fixed assets are stated at cost less depreciation.

Depreciation is provided so as to write off the cost of fixed assets less their estimated residual value over their anticipated useful lives:-

Motor Vehicles - 25% on reducing balance basis
Fixtures, fittings & equipment - 25% on reducing balance basis

Intangible assets amortisation policy
Goodwill, being the amount paid for the acquisition of a business is being amortised evenly over its estimated useful life of 25 years.

Other accounting policies
Stock
Stock of oriental carpets is valued by the directors at the lower of cost (including duties and carriage) and net realisable value.

Although no professional revaluation was carried out at the balance sheet date, in the opinion of the directors and their advisers, the company's freehold investment properties had an open market value in excess of its cost to the company. Accordingly no amortisation has been provided in respect of the freehold properties.