Abbreviated Company Accounts - SPECS EXPRESS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
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
All fixed assets are initially recorded at cost.

Depreciation

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:

Fixtures, fitting and office equipment - 15% reducing balance
Freehold property - not depreciated
Improvements to leasehold - 10% straight line

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:

Goodwill - 10% straight line

Other accounting policies
Pension costs

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Deferred taxation

Provision is made, under the liability method, to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes. Tax deferred or
accelerated is accounted for in respect of all material timing differences.

The freehold building within land and buildings has not been depreciated, as in the opinion of the directors the charge is not material.

Finance lease agreements

Included within the net book value of £87,256 is £1,179 (2015 - £1,387) relating to assets held under finance lease agreements. The depreciation charged to financial statements in the year in respect of such assets amounted to £208 (2015 - £245).