Abbreviated Company Accounts - COBURG HOMES LTD

1Accounting Policies

Basis of measurement and preparation of accounts
These financial statements have been prepared on the going concern basis on the understanding that the directors will continue to provide financial support to the company for the foreseeable future.

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 January 2015).

Tangible assets depreciation policy
The directors consider that the company's freehold properties are Investment Properties as defined by the Financial Reporting Standard for Smaller Entities (effective January 2015).

Freehold properties are stated at valuations which the directors consider are not materially different from their cost. Impairment losses arising where the current market value of of these properties is lower than original historical cost are to be charged to profit and loss account.

No provision has been made for any depreciation on these assets. Although this is a departure from the accounting requirements of the Companies Act 2006, which required such properties to be depreciated, the directors consider that departure in this regard is justified on the grounds of compliance with the overriding requirement of section 396(2) of the Companies Act 2006 for the financial statements to show a true and fair view.