Abbreviated Company Accounts - EAST HULL COMMUNITY FARM LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16 July 2014, the Financial Reporting Standard for Smaller Entities (effective January 2015) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value.

Turnover policy
Income from placements is recognised when the placement has been completed, and when the charity becomes entitled to receive the income.
Grants and funds are recognised when the charity becomes entitled to the amount.
Produce sales are recognised when the goods have been delivered to the customer. These are usually made on a cash basis.
Expenditure is accounted for using the accruals concept. All expenditure directly connected to running the farm activities is treated as charitable expenditure. Expenditure relating to the running of the office activities is treated as administration expenses.

Tangible assets depreciation policy
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives
Plant and machinery - 25% reducing balance method
Property improvements - 2% straight line method
Motor vehicles - 25% reducing balance method

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

2Company limited by guarantee
Company is limited by guarantee and consequently does not have share capital.