Abbreviated Company Accounts - THE GENTRY GROOMING CO (MERCHANDISING) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The company is dependent on funding provided by the director and shareholders, M and Mrs A Lock. They have confirmed that they will provide funding as required by the company in order to meet its financial obligations for the foreseeable future and, as such, they are of the opinion that the company is a going concern and the accounts are to be prepared on that basis.

Accounting convention
The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy
Revenue comprises the aggregate of the fair value of the sale of services provided, net of value-added tax. Revenue is recognised as those services are provided to customers.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 15% on cost

Other accounting policies
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is derived from actual purchase price.

Deferred tax
Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date. Deferred tax assets are only recognised to the extent that they are reasonably expected to reverse in the near future .Deferred tax assets are recognised to the extent that it is regarded as more likely than not that the asset will be recovered in the foreseeable future