Abbreviated Company Accounts - CANOE SPORT LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared on a break-up basis and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).
Break-up basis of accounting:
On 30 October 2015 the director decided that the company had no realistic alternative but to cease trading. Despite significant efforts, sales have continued to fall and the company's liabilities continue to exceed its assets. The director therefore took the decision to close the business shortly after the year end and make the employees redundant. All fixed and current assets are stated at the lower of cost and estimated net realisable value as detailed below. The accounts include provision for staff redundancy costs. No other costs relating to the closure of the business have been identified.

Turnover policy
Turnover represents the value of goods dispatched during the year. The value is calculated at selling price net of discounts and Value Added Tax.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation subject to an impairment review to reduce the net book value to likely sale value following closure of the business. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, on a reducing balance basis, over the useful economic life of that asset as follows: plant and machinery - 15% per annum; fixtures, fittings and equipment - 25% per annum.

Valuation information and policy
Stock comprises goods purchased for resale and is stated at the lower of cost and net realisable value. Cost is purchase price less trade discounts, calculated using the first-in, first-out method. Net realisable value is calculated as selling price less selling and distribution costs.

Other accounting policies
Rentals under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
Deferred tax: At the balance sheet date the company has unrelieved losses carried forward. The deferred tax asset that would arise on those losses has not been recognised as it is unlikely that they will be recovered in full.