Abbreviated Company Accounts - GYMOPHOBICS (COLCHESTER) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted, 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 comprises revenue recognised by the company in respect of goods and services supplied
during the year, exclusive of Value Added Tax and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates
calculated to write off the cost of fixed assets, less their estimated residual value, over their
expected useful lives on the following bases:
Short-term leasehold property - 25% reducing balance
Plant and machinery - 25% reducing balance
Motor vehicles - 25% reducing balance
Fixtures and fittings - 15% reducing balance

Other accounting policies
Going concern
Despite net current liabilities of £13,885 at the year end date, the directors are confident that the
company is a going concern. Included in current liabilities is an amount of £14,199 owing to the
directors which will not be repaid until the company is in a position to do so.

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

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for
obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of
fixed and variable overheads.