Abbreviated Company Accounts - J ALSTON & SONS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Turnover policy
The turnover shown in the profit and loss account represents the amount of goods and services provided during the year, exclusive of Value Added Tax.

Turnover is recognised when the goods are physically delivered or the services are actually provided to the customer.

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:

Freehold Property - 2% or 10% straight line
Plant & Machinery - 15% straight line and 25% reducing balance
Office Equipment - 10% reducing balance
Motor Vehicles - 25% reducing balance

Freehold land is not depreciated.

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:

Entitlements - 20% straight line

Valuation information and policy
Commodity stocks and cultivations are valued at the lower of cost and net realisable value by the directors, after making due allowance for obsolete and slow moving items. The valuation of crops in store and cultivations includes an element of depreciation.

Other accounting policies
Fixed assets

All fixed assets are initially recorded at cost.

Hire purchase agreements

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs

The company operates a defined contribution scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

The pension costs charged against profits represent the amount of the contributions payable to the scheme in respect of the accounting year.

Deferred taxation

Provision is made, under the liability method, to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes. Tax deferred or accelerated is accounted for in respect of all material timing differences.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Investments

Investments are included at cost less provision for diminution in value. Profits or losses arising from disposals of fixed asset investments are treated as part of the result from ordinary activities.

Investment income comprises dividends declared during the accounting year and interest receivable on listed and unlisted investments.

Included within Freehold land and buildings is an amount of £5,479,581 (2014-£3,803,605) which relates to land.

4Fixed assets Investments
Included in the above are Listed investments of £0 (2014 : £200) and Unlisted investments of £50 (2014 - £50).

400 Ordinary 'A' shares of £1 each 400 400
1,525 Ordinary 'B' shares of £1 each 1,525 1,525
1,525 Ordinary 'C' shares of £1 each 1,525 1,525
1,525 Ordinary 'D' shares of £1 each 1,525 1,525
1,525 Ordinary 'E' shares of £1 each 1,525 1,525
2,000 Ordinary 'F' shares of £1 each 2,000 2,000
1,600 Ordinary 'G' shares of £1 each 1,600 1,600

8Transactions with directors

At the year end, Mr A L and Mrs A L Alston had a balance outstanding on their joint directors loan account of £2,181 owed from the company to the directors (2014: £4,474 owed from the directors to the company). The maximum overdrawn balance during the year was £8,524.

At the year end, Mr J A Alston had a balance outstanding on his directors loan account of £209,000 owed to the company by the director (2014: £354,497). The maximum overdrawn balance during the year was £354,497.