Abbreviated Company Accounts - C & K MORTON (FARMERS) 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
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Plant & Machinery - 10% Reducing balance
Fixtures, fittings and equipment - 20% Reducing balance
Motor vehicles - 25% Reducing balance

Included in fixtures, fittings and equipment is computer equipment being depreciated over three years on a straight line basis.

Valuation information and policy
Stock is valued at the lower of cost and net realisable value.

Other accounting policies
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Provision is made for deferred tax using the liability method to take account of timing differences between the income and expenditure for taxation and accounting purposes except to the extent that the directors consider that liability to taxation unlikely to materialise.

3Fixed assets Investments
Fixed asset investments are stated at cost less provision for permanent diminution in value.