Abbreviated Company Accounts - JUST PLANTS BRISTOL LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted,
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 amounts invoiced during the
year, exclusive of Value Added Tax.

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:
Asset class - Depreciation method and rate
Plant and machinery - 25% per annum reducing balance
Motor vehicles - 25% per annum reducing balance
Equipment - 25% per annum reducing balance

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:
Asset class - Amortisation method and rate
Goodwill - 10% per annum straight line

Other accounting policies
Goodwill
Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on
a straight line basis over its useful economic life. It is reviewed for impairment at the end of
the first full financial year following the acquisition and in other periods if events or changes in
circumstances indicate that the carrying value may not be recoverable.

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

Deferred tax
Deferred Tax is recognised in respect of all timing differences that have orginated but not
reversed at the balance sheet date where transactions or events have occured 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 ta
apply in the periods in which timing differences reverse, based on tax rates and laws
enacted or substantively enacted at the balance sheet date.

Hire purchase and leasing
Rentals payable under operating leases are charged in the profit and loss account on a
straight line basis over the lease term.
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.
Rentals applicable to operating leases where substantially all of the benefits and risks of
ownership remain with the lessor are charged against profit on a straight line basis over the
period of the lease.

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.
Where the contractual obligations of financial instruments (including share capital) are
equivalent to a similar debt instrument, those financial instruments are classed as financial
liabilities. Financial liabilies are presented as such in the balance sheet. Finance costs and
gains or losses relating to financial liabilites are included in the profit and loss account.
Finance costs are calculated so as to produce a constant rate of return on the outstanding
liability.
Where the contractual terms of share capitall do not have any terms meeting the definition
of a financial liability the this is classed as an equity instrument and are debited direct to
equity.