Abbreviated Company Accounts - KNIGHTSWOOD (PROPERTY AND INVESTMENTS) COMPANY 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 invoice value of goods and services supplied excluding value added tax.

Tangible assets depreciation policy
Investment properties are valued annually by the directors.
The financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008) and therefor no depreciation or amortisation is provided in respect of properties. This departure from the Companies Act 2006, for properties to be depreciated is, in the opinion of the directors, necessary for the accounts to give a true and fair view.
If this departure from the Act had not been made, the profit for the financial year would have been reduced by depreciation. However, the amount of depreciation cannot reasonably be quantified because depreciation is only one of the factors reflected in the valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.

Other accounting policies
Frs25 (ias 32) financial instruments: disclosure and presentation
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the equity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classified as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains and losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability, then this is classified as an equity instrument. Dividends and distributions relating to equity instruments are debited directly to equity.

3Fixed assets Investments
Knightswood Property and Investments Company Limited holds a non equity investment in Oakenash Group Limited, a company incorporated in the United Kingdom, which is controlled by directors common to both companies.