Abbreviated Company Accounts - ROMANO'S COFFEE 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 represents amounts chargeable, inclusive of value added tax, in respect of sales made during the year. The corresponding flat rate VAT payable is charged as an expense in the profit and loss account.

Tangible assets depreciation policy
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected economic life as follows:
Plant and equipment - 25% per annum of net book value
Motor vehicles - 25% per annum of net book value

Valuation information and policy
Stock
Stock is valued at the lower of cost and realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Other accounting policies
Deferred tax
Deferred tax is recognised in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date.
Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse based on the tax rates and law enacted at the balance sheet date.
Leasing
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis.