Abbreviated Company Accounts - GATOR SPORTS LTD

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention and in compliance with the provisions of the Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008 (SI2008/409) and Financial Reporting Standard 102 Section 1A.

The financial statements have been prepared under the going concern basis, which assumes that the company is able to meet its financial obligations as and when they fall due. The director and shareholders who are the major creditors have confirmed that they will maintain their financial support of the company to enable it to continue normal trading operations for the foreseeable future.

Turnover policy
Turnover represents the invoiced value of goods supplied during the period, excluding Value Added Tax.

Tangible assets depreciation policy
Fixed assets are stated in the balance sheet at cost, less a provision for depreciation. Depreciation is provided at the following annual rates in order to write each asset down to its residual value over its estimated useful life:
Fixtures and fittings – 25% on reducing balance
Office equipment – 25% on reducing balance

Other accounting policies
Stock and goods-in-transit

Stock and goods-in-transit are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Foreign currencies

Assets and liabilities denominated in foreign currencies are translated into pounds sterling at the rates ruling at the balance sheet date. Transactions denominated in foreign currencies are translated into pounds sterling at the rates effective at the date of the transaction. Exchange differences arising on the retranslation of balances and settlement of transactions denominated in foreign currencies are taken to the profit and loss account as they arise.