Abbreviated Company Accounts - GRANELLI'S CREAM ICES (MACCLESFIELD) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention as modified by the revaluation of freehold land and buildings and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

The company meets its day to day working requirements through a bank overdraft facility which is repayable on demand. Additionally, loans have been provided from the directors.

The directors consider it appropriate to prepare the financial statements on a going concern basis, having confirmed their continuing their support and that of the company's bankers.

Turnover policy
Turnover represents goods sold to customers during the year, net of Value Added Tax.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost or valuation less depreciation.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives, on the following bases:-

Refrigeration plant and equipment - 10% per annum, reducing balance basis
Fixtures, fittings and equipment - 10% per annum, reducing balance basis
Ice cream vans - 10% per annum, reducing balance basis
Other vans - 25% per annum, reducing balance basis

A provision for depreciation has not been made against the revalued freehold land and buildings, as the directors are of the opinion that development market value of the site is in excess of the current valuation, based on an open market, existing use basis.

Valuation information and policy
The freehold land and buildings were revalued to £250,000 on 29 January 2003 by Barker & Co, an independent firm of estate agents and valuers, on an open market, existing use basis. The directors are not aware of any material change in the value since the date of the valuation.

Other accounting policies
Leasing contracts:
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.

Stocks:
Stock has been 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:
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.