Abbreviated Company Accounts - NORTHMOUNT 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.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost. 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: 25% reducing balance.

Other accounting policies
Investment properties.
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve. Investment properties represent freehold and leasehold properties held for investment purposes. Such properties are disclosed at their open market value and are not subject to depreciation. This policy is in accordance with SSAP 19, but is a departure from the requirement of the Companies Act 2006, which requires all properties to be depreciated. The properties are not held for consumption but for investment, and the directors consider that to depreciate them would not give a true and fair view.
Work in progress.
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.