Abbreviated Company Accounts - NORTH MIDDLESEX GOLF CLUB (1928) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The Financial statements have been prepared under the historical cost convention, and in accordance with applicable accounting standards.

Turnover policy
The turnover shown in the income and expenditure account represents amounts invoiced during the year, exclusive of Value Added Tax.

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economical life of the asset as follows:

Improvements to Leasehold Property - 10% to 20% straight line.
Course Plant & Equipment - 5% to 25% straight line
Clubhouse Fixtures and Fittings - 5% to 33% straight line
Course Improvements - 5% to 33% straight line
Bar Improvements - 5% to 25% straight line
Leasehold Land - 190 years straight line

Intangible assets amortisation policy
There are no intangible assets.

Valuation information and policy
Fixed Assets
All Fixed Assets are initially recorded at cost.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolescence and slow moving items.

Other accounting policies
Finance Lease Agreements
Where the company enters a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the above depreciation policies. Future instalments under such leases, net of finance charges, are included with creditors. Rentals payable are apportioned between the finance element , which is charged to the income and expenditure account, and the capital element which reduces the outstanding obligation for future instalments.

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 income and expenditure account so as to produce a constant periodic charge on the remaining obligation.

Sinking Funds and Reserves
Regular allocations are made to the sinking funds to meet major expenses on repairs and maintenance, both to the course and the premises, which do not occur at reglar intervals and which otherwise would distort the accounts from one year to the next.

Operating Lease Agreements
Rentals appicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

National Loan Guarantee Scheme
Pursuant to the National Loan Guarantee Scheme, the Club received the sum of £29,015, which is the net present value of a one percent discount on the Barclays Business loan balance, calculated over five years from the date when the facility was taken up. The Club will release this balance to the Income and Expenditure Account, as follows:-
2011/12, 25%; 2012/13, 25%; 2013/14, 20%;2014/13, 15%; 2015/16, 15%