Abbreviated Company Accounts - NORTH MIDDLESEX GOLF CLUB (1928) 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 shown in the income and expenditure account represents amounts invoiced during the year, exclusive of Value Added tax

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Improvements to Leasehold Property - 10% to 20% straight line
Course Plant & Equipment - 5% to 25% straight line
Clubhouse fixtures and fittings - 5% to 33% straight line
Course Improvements - 5% to 33% straight line
Bar Improvements - 5% to 25% straight line
Leasehold Land - 190 years straight line

Other accounting policies
Finance lease agreements
Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the above depreciation policies. Future instalments under such leases, net of finance charges, are included with creditors. Rentals payable are apportioned between the finance element, which is charged to the income and expenditure account, and the capital element which reduces the outstanding obligation for future instalments.

Hire purchase agreements
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the income and expenditure account so as to produce a constant periodic charge on the remaining obligation.

Sinking funds and reserves
Allocations are made to the sinking funds to meet major expenses on repairs and maintenance, both to the course and the premises, which do not occur at regular intervals and which could otherwise distort the accounts from one year to the next.

Operating Lease Agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.


National Loan Guarantee Scheme
Pursuant to the National Loan Guarantee Scheme, the Club received the sum of £29,015, which is the net present value of a one percent discount on the Barclays Business loan balance, calculated over five years from the date when the facility was taken up. The Club will release this balance to Income and Expenditure Account, as follows:-

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
25% 25% 20% 15% 15%

Included within course plant and equipment and clubhouse fixtures and fittings are assets held under hire purchase agreements with a net book value of £12,187 (2014 £29,019). The depreciation charged to these assets amounted to £10,633 (2014 £15,374)