Abbreviated Company Accounts - FLOWERGRANGE 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 January 2015

Turnover policy
Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods and services falling within the company's ordinary activities

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
land and buildings – not provided
plant and machinery – 10% reducing balance

It is considered that the residual value and life of the land and buildings are such that depreciation would be immaterial. The directors perform annual impairment reviews in accordance with the requirements of the financial reporting standard for smaller entities (effective January 2015) to ensure that the recoverable amount is not lower than the carrying value.

No depreciation is provided in respect of the land and buildings. This treatment conflicts with the companies act 2006 which requires all properties to be depreciated.

The effect of not departing from the companies act 2006 would be to reduce the reported profits for the year by depreciation. The amount of depreciation cannot reasonably be quantified because depreciation is only one of the many factors reflected in the annual valuation and the amounts which might otherwise have been shown cannot be separately identified or quantified

Valuation information and policy
Leasing
assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charge the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period

Stock
stock is valued at the lower of cost and net realisable value

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, all right to pay less or to receive more, tax, with the following exceptions:

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

Deferred tax assets are recognised only to the extent that the directors consider it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

During the year the company purchased 27 of its own ordinary shares of £1 each for £197,683. This represented 36.49% of the issued share capital of the company. The share buyback was to allow selected shareholders to withdraw their investments and end their connection with the company