Abbreviated Company Accounts - C.E.MURCH LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention as modified by the revaluation of land and buildings and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy
Turnover represents revenue due from the normal activities of the business to the extent that the company obtains a right to consideration in exchange for its performance of those activities, exclusive of Value Added Tax.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost or valuation of those assets, less their estimated residual value, over their expected useful lives on the following bases

Freehold buildings and improvements - 2% Straight Line
Machinery & Equipment - 12.5% Straight Line
Tractors - 20% Straight Line
Motor Vehicles - 25% Straight Line
Office equipment - 10% Straight Line
Embedded generation - 4% Straight Line

Intangible assets amortisation policy
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the Profit and loss account over its estimated economic life.

Single farm payment entitlement is the amounts paid on the acquisition of the entitlement and will be amortised to the Profit and loss account over its estimated economic life.

Other accounting policies
Cash Flow

The financial statements do not include a Cash flow statement because the company, as a small reporting entity, is exempt from the requirement to prepare such a statement under the Financial Reporting Standard for Smaller Entities (effective April 2008).

Revaluation of tangible fixed assets

As permitted by the transitional provisions of the Financial Reporting Standard for Smaller Entities (effective April 2008) the company has elected not to adopt a policy of revaluation of tangible fixed assets. The company will retain the book value of land and buildings, previously revalued at July 1998 and will not update that valuation.

Investments

(i) Subsidiary undertakings
Investments in subsidiaries are valued at cost less provision for impairment.

(ii) Other investments
Investments held as fixed assets are shown at cost less provision for their impairment.

Leasing and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Farm valuation

The company's stores together with crops under cultivation have been valued on the basis of the lower of cost, and net realisable value.

Cost comprises direct costs together with labour and machinery usage. No addition has been made for attibutable production overheads because, in the opinion of the directors, the cost of providing the information would be out of proportion to the value thereof in assessing the company's performance.

Consolidation

Consolidation accounts have not been prepared as the subsidiaries are dormant and the company satisfies the exemption conditions from preparation of group accounts. These financial statements therefore present information about the company as an individual undertaking and not about its group.

EU Agricultural support schemes

Payments under EU crop schemes are recognised as income when the business has met all the criteria which entitle it to the payments, with the exception of the Arable Area Payments Scheme. Payments under this scheme, including the related set aside payments, are regarded as being an addition to crop proceeds and, as such, they are recognised as income arising at the time of sale of the appropriate crop.

Payments received under the Basic Payment Scheme are recognised evenly on a time basis once the conditions for entitlement have been met.

At 5 April 2015, included within the net book value of land and buildings is £1,470,642 (2014 - £1,475,990) relating to freehold land and buildings.

4Fixed assets Investments
Cost or valuation
At 6 April 2014 and 5 April 2015 39,075

Net book value

At 5 April 2015 39,075
At 5 April 2014 39,075

Subsidiary undertakings

The following were subsidiary undertakings of the company:

Name: Pretroy Limited (registered in England and Wales)

Class of shares: Ordinary

Holding: 100%

The aggregate of the share capital and reserves as at 5 April 2015 and of the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name: Pretroy Limited (registered in England and Wales)

Aggregate of share capital and reserves : 100

Profit/(loss): -

Capital accounts invested in participating interests:

The company has capital accounts invested in an LLP and one partnership, being:


J G Palmer LLP 1,000
Messrs J D Atkins 37,875
38,875