Abbreviated Company Accounts - SMILE DESIGN CENTRE 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 20015

Turnover policy
The turnover shown in the profit and loss account represents amounts invoiced during the year.

Tangible assets depreciation policy
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:
Leasehold property - 15% straight line
Plant & machinery - 15% reducing balance
Fixtures & fittings - 20% reducing balance
Equipment - 30% reducing balance

Intangible assets amortisation policy
Goodwill
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over its useful economic life.

Other accounting policies
Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Deferred taxation
Deferred tax is provided on 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
is accounted for in respect of all material timing differences to the extent that it is considered
that a net liability may crystallise.

Goodwill arose upon the incorporation of the business and when trade commenced on 1st October 2009.