Abbreviated Company Accounts - PANAGUA LTD

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 profit and loss account represents revenue recognised by the company in respect of goods and services supplied during the period, exclusive of Value Added Tax and trade discounts.

Tangible assets depreciation policy
Depreciation is provided, after taking account of any grants receivable, at the following annual rates in order to write off each asset over its estimated useful life. Leasehold buildings - 20% on cost or revalued amounts, Plant and Machinery - 20% on cost, Fixtures and fittings - 20% on cost, Computer Equipment - 33% on cost.

Intangible assets amortisation policy
Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight basis over their estimated useful economic lives, not to exceed five years.
Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

Valuation information and policy
Stocks and work -in-progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Other accounting policies
Hire Purchase Contracts - Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.
Operating Leases - Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
Research and Development - Expenditure on research and development is written off in the year in which it is incurred.
Deferred Taxation - Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. Deferred taxation is calculated at the rates of tax that are expected to apply in the periods when the timing differences will reverse and has not been discounted.

Panagua Bikes is a retail shop based in Hayes, Bromley, South East London. The shop focuses on the retail of bicycles for Road, Trail and Urban use and the provision of other related equipment including clothing. The shop also provides Service and Repair facilities through a fully equipped workshop.

Intangible Assets consist of website development costs for the online presence of Panagua Bikes. At the year end the website was still in development and was not operational.

Tangible assets principally comprise the costs assosciated with refurbishing and outfitting the leasehold premises at 50 Hayes Street, Bromley. This is the main site for the retail operation which trades as Panagua Bikes. Computer equipment includes the costs of installing an EPOS (Electronic Point of Sale) system in the store.

During the year 49,999 ordinary shares of £1 each were issued, allotted and fully paid for cash at par. The sole director is also the sole shareholder of the Company.