Abbreviated Company Accounts - LOCH NESS COUNTRY HOUSE HOTEL 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 represents the total invoice value, excluding value added tax, of sales made during
the year and derives from the provision of goods falling within the company's ordinary
activities.

Tangible assets depreciation policy
Investment properties are accounted for as follows:
Investment properties are revalued annually and the aggregate surplus or deficit is transferred
to the revaluation reserve. When a deficit (or its reversal) on an individual investment
property is expected to be permanent however it is charged (credited) to the profit and loss
account of the period. No depreciation or amortisation is provided in respect of freehold
investment properties.
Although the Companies Act would normally require the systematic annual depreciation of
fixed assets, the directors believe that the policy of not providing depreciation is necessary in
order for the accounts to give a true and fair view since the current value of investment
properties, and changes to that current value, are of prime importance rather than a calculation
of systematic annual depreciation. Depreciation is only one of the many factors reflected in
the annual valuation and the amount which might otherwise have been included cannot be
separately identified or quantified.

Other accounting policies
Deferred taxation

Deferred tax is recognised in respect of all timing differences that have originated but not
reversed at the balance sheet date where transactions or events have occurred at that date that
will result in an obligation to pay more, or a right to pay less or to receive more, tax.
Deferred tax assets are recognised only to the extent that the directors consider that it is 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 is measured on an undiscounted basis at the tax rates that are expected to apply in
the periods in which timing differences reverse, based on tax rates and laws enacted or
substantively enacted at the balance sheet date.