Abbreviated Company Accounts - THE TRAINING ROOM HEALTH AND FITNESS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).
At the balance sheet date the company has net current liabilities of £7,341 , 835 (201 4 : £6,650,331). The company is dependent upon the support of Fitspace Limited, the parent company. Fitspace Limited has undertaken not to request repayment of amounts due by the company for the foreseeable future and on this basis the directors consider it appropriate to prepare the financial statements on a going concern basis.

Turnover policy
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings Leasehold 10% - over the life of the lease
Gym equipment 16% - 33% straight line
Fixtures, fittings & equipment 20% - 33% straight line

Intangible assets amortisation policy
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.

Valuation information and policy
Stock is valued at the lower of cost and net realisable value.

Other accounting policies
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's accounts. Deferred tax is provided in full on timing differences that result in an obligation to pay more (or less) tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax asset is only provided for when the asset is expected to crystalise in the forseeable future.