Abbreviated Company Accounts - PEGASUS PROPERTIES 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 rents receivable from the letting of investment properties.

Tangible assets depreciation policy
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:
Fixtures and fittings 15% reducing balance
Office equipment 25% straight line

Valuation information and policy
Investment properties
In accordance with SSAP 19, investment properties are revalued annually and the aggregate surplus or deficit is transferred to a revaluation reserve, and no depreciation or amortisation is provided in respect of freehold investment and leasehold investment properties. This is a departure from the Companies Act 2006, but the directors consider that this accounting policy is neccessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of the factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be seperately identified or quantified.

Other accounting policies
Deferred taxation
Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse.

The company had investment properties at valuation not depreciated of £575,000. The historical cost of these properties was £237,837 and they were revalued at the year end on an open market basis by the director.