Abbreviated Company Accounts - R W ESTATES (TRADING) 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 or valuation less residual
value of each asset over its expected useful life, as follows:
Fixtures, fittings
and equipment - 20% on a reducing balance basis
Tangible fixed assets are stated at cost less accumulated depreciation.
Investment Properties
Investment properties are not depreciated, this is in conflict with the requirements of the
Companies Act 2006. In accordance with the Financial Reporting Standard for Smaller
Entities (effective April 2008), investment properties are included in the balance sheet at their
open market values. The surplus(es) or deficit(s) on revaluation are transferred to the
investment property revaluation reserve.
This treatment constitutes an override of the Companies Act requirement to depreciate fixed
assets and is necessary in order to give a true and fair view as current market values are of
prime importance rather than the calculation of systematic annual depreciation. Depreciation
is only one of many factors reflected in the valuation, the amount which might otherwise be
shown cannot be separately identified or quantified.

Other accounting policies
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 rates that are expected to apply in
the periods in which timing differences reverse, based upon tax rates and laws enacted or
substantially enacted at the balance sheet date.