Abbreviated Company Accounts - R & A WILSON 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 arising from the sale of goods is recognised when the significant risks and rewards of ownership have passed to the buyer. Turnover arising from the provision of services is recognised as contract activity progresses and the right to consideration is earned.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Robotic milking equipment - 10% straight line
Property improvements - 4% straight line
Plant and machinery - 15% reducing balance
Tractors - 15% reducing balance
Motor vehicles - 25% reducing balance
Computer equipment - 25% straight line

Intangible assets amortisation policy
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 10 years.

The milk quota is valued at cost less accumulated depreciation. Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful life of 10 years.

Valuation information and policy
Stock is valued at the lower of cost and net realisable value by the directors with the exception of the animals on herd basis. Cost includes all direct expenditure and appropriate proportion of fixed and variable overheads. Net realisable value is based on estimated selling prices less further costs expected to be incurred in bringing the growing crops to completion and finishing the livestock.

Other accounting policies
Leasing and hire purchase commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over 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 charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the term of the lease.

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

Going concern
The company is dependent on the continued financial support of its bankers and the directors. The directors have indicated that they will continue to support the company via their loan accounts. The accounts have therefore been prepared on the going concern basis and do not contain any adjustment that would be necessary if a going concern basis was not appropriate.

6Transactions with directors

This loan is unsecured and interest has been charged at the rates published by HMRC.