Abbreviated Company Accounts - MOORPOINT 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 value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

Tangible assets depreciation policy
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Plant and machinery 25% reducing balance
Motor vehicles 25% straight line

Other accounting policies
Investment properties
Investment properties are accounted for in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). No depreciation is provided in respect of such properties, other than where the properties are held under a lease which has less than 20 years remaining. Although the Companies Act 2006 would normally require the systematic annual depreciation of fixed assets, it is believed that this policy of not providing depreciation is necessary in order for the accounts to give a true and fair view, since the current value of investment properties, and changes in current value, are of prime importance rather than the calculation of systematic annual depreciation. Depreciation is only one of many factors reflected in the annual valuation, and the amount which might otherwise have been shown cannot be separately identified or quantified.
Deferred taxation
Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse.

The Directors have utilised the valuation included in the most recent external valuers report in arriving at their determination of the market value of the investment property as at 30 November 2014.
The freehold investment properties were revalued on 20 February 2014 by Mr N Rickford of BNP Paribas Real Estate, a member of the Royal Institution of Chartered Surveyors on the basis of open market value subject to the existing tenancies.
The freehold valuation and equivalent cost were as follows
2015 - £4,225,000 (Cost £1,716,291)
2014 - £4,225,000 (Cost £1,716,291)
If the buildings were sold at the current valuation a liability to corporation tax would arise of approximately £545,264. This liability is not provided for in the financial statements.
The Directors have reviewed the valuation of the freehold investment property in light of the current market conditions. In his position as a Chartered Surveyor, Mr D G Bell, a director of the company, has confirmed to the Board that no increase to the valuation is necessary.

3Fixed assets Investments
The company holds 20% or more of the share capital of the following companies:

Company Class % Capital and reserves Loss for the year
Clifton Down Development Ltd Ordinary 100 (£186,678) (£8,729)