Abbreviated Company Accounts - DE VILLE TAVERNS 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 comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Revenue is recognised when amounts are received as the company does not give credit to its customers.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost 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 of those assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold property - None
Plant and machinery - 15% straight line
Motor vehicles - 25% reducing balance
Fixtures and fittings - 15% straight line
Office equipment - 33% straight line

The Freehold property is partly occupied by the company (with the remainder held as an investment) and is continually maintained in a good state of repair. The residual value is regularly reviewed by the director and where appropriate no depreciation is charged.

Other accounting policies
Investment properties
Investment properties are included in the Balance sheet at their open market value in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008) and are not depreciated. This treatment is contrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, in the opinion of the director, necessary in order to give a true and fair view of the financial position of the company.

Operating leases
Rentals under operating leases are charged to the Profit and loss account on a straight line basis over the lease term.

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Deferred taxation
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

Pensions
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

The Freehold Property includes a proportion held as investment property. The property was revalued by the director at the balance sheet date on the basis of open value market value for existing use.

No additional UK taxation would arise if the property was sold at current market value.

No depreciation is charged on the Freehold Property as detailed in the accounting policies.