Abbreviated Company Accounts - LIGHTING CENTRE 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 profit and loss 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:

Plant & Machinery - 20% reducing balance

Intangible assets amortisation policy
Amortisation 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:

Goodwill - Straight line over 5 years

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

Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Other accounting policies
Going Concern
The company has struggled to maintain profit margins to cover overheads, resulting in a loss for the year. As a result, the directors have refocused the target customer base and have implemented measures to cut overheads. After careful consideration of the uncertainties faced by the company and the steps taken to refocus the business, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have also agreed not to seek repayment of the directors loan account until the company has sufficient funds to do so. For these reasons they continue to adopt the going concern basis of accounting in preparing the annual financial statements.