Abbreviated Company Accounts - RICOCHET MANAGEMENT LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Accounting Policies

Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention and Include the results of the Company's operations which are described in the Director’s Report and all of which are continuing.

The Company has taken advantage of the exemption in Financial Reporting Standard No.1 from the requirement to produce a cash flow statement on the
grounds that it is a small Company.

Turnover

Turnover comprises the invoiced value of goods and services supplied by the Company, net of Value Added Tax and trade discounts.

Tangible Fixed Assets and Depreciation

Fixed assets are stated at cost less depreciation.

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

Freehold and Investment Properties

In accordance with SSAP 19, (1) investment properties are re-valued annually and the aggregate surplus or deficit is transferred to a revaluation reserve, and (2) no depreciation is provided in respect of freehold investment properties. This is a departure from the Companies Act 1985 which requires assets which have a finite useful life to be depreciated where their cost (or valuation) is greater than their residual value (as assessed at the date of acquisition or valuation). The Directors consider that, following the reasoning in SSAP 19, depreciating the assets would not give a true and fair view because they are held for investment and not consumption. Consequently the current value of these investments, and changes in that current value, are of prime importance in assessing the financial position rather than a calculation of systematic annual depreciation and therefore the accounting policy adopted results in the accounts giving a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.