Abbreviated Company Accounts - SOMETHING DIGITAL (UK) 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.

Going concern
The financial statements have been prepared on a going concern basis which assumes that the company will continue to receive financial support from its parent undertaking.

Turnover policy
Turnover represents amounts receivable for services rendered by the company, excluding VAT.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Photographic equipment - 25% straight-line
Fixtures and fittings - 20% straight-line
Office equipment - 20% straight-line
Computer equipment - 25% straight-line

Other accounting policies
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the average rate for the month in which the transaction takes place. All differences are taken to the profit and loss account.

Deferred taxation
Deferred tax is recognised in full in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. The deferred tax balance has not been discounted.