Abbreviated Company Accounts - WELLINGTON CARE (SOMERSET) 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
Turnover represents the total value of goods, excluding value added tax, provided to customers during the year, plus the value of work, excluding value added tax, performed during the year with respect to services.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Land and buildings - 2% straight line
Plant and machinery - 20% reducing balance
Fixtures, fittings and equipment - 20% reducing balance
Motor vehicles - 25% straight line
Computer equipment - 33% straight line
Tangible fixed assets are stated at cost less accumulated depreciation.

Other accounting policies
Stock:-
Stock is valued at the lower of cost and net realisable value.

Pensions:-
The pension costs charged in the financial statements represent the contribution payable by the company during the year.

Deferred taxation:-
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Government grants:-
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

Ultimate parent undertaking:-
The ultimate holding company is Peace Homes Limited a company incorporated in England and Wales. The company is under the ultimate control of Mr A G Peace.