Abbreviated Company Accounts - FOREMARK GARAGE 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 & loss account represents amounts invoiced during the year, exclusive of value added tax.
It derives from the provision of goods falling within the company's ordinary activities wholly undertaken in the UK.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Leasehold property - Straight line over the life of the lease
Plant & Machinery - 20% reducing balance
Fixtures & Fittings - 20% reducing balance
Motor Vehicles - 20% reducing balance

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

Other accounting policies
Hire Purchase Agreements
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.