Abbreviated Company Accounts - STEPHENS ESTATES 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
The turnover and profit before taxation is attributable to the principal activity of the company, and is stated net of VAT and trade discounts.

Tangible assets depreciation policy
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life at the rate of 25% per annum on the straight line basis.

Intangible assets amortisation policy
Goodwill, being the amount paid in connection with the acquisition of a business in 2001, is being amortised evenly over its expected useful life of twenty years.

Other accounting policies
Going Concern- The financial statements have been prepared on the going concern basis. The company is dependent upon the continuing support of the directors, who are also the shareholders, and they have confirmed that they will not require the repayment of their loans to the company within the foreseeable future.

Hire purchase and leasing - 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.

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