Abbreviated Company Accounts - CAFFE SHOP 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.
The company meets its day to day working capital requirements from the director. The director will continue to support the company during the next year and therefore considers it appropriate to prepare the accounts on a going concern basis.

Turnover policy
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Plant and machinery etc - 25% on reducing balance.

Intangible assets amortisation policy
Domain Name : Amortisation is provided at 20% straight line in order to write off the cost less estimated value of the asset over its estimated useful life.

Valuation information and policy
Stocks and work-in-progress are valued at the lower of cost and net realisable value, after making due allawance for obsolete and slow moving items.
Cost includes all direct expenditure and an appropriate portion of fixed and variable overheads.

Other accounting policies
Deferred Tax : Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. The deferred tax balance has not been discounted.

Hire Purchase and Leasing Commitments : Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits : The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss accoount in the period to which they relate.