Abbreviated Company Accounts - ASPINS BAKERY LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Basis of accounting

The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements have been prepared on the going concern basis. The directors consider that this basis is appropriate following due consideration of the present financial position, the expected prospects of the company during the twelve months from the date of approval of these financial statements and the continued support of the company's directors and bankers during this time.

Turnover policy
The turnover figure represents sales during the year, excluding any VAT content

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 - 10% straight line
Plant & Machinery - 25% reducing balance
Fixtures & Fittings - 15% reducing balance
Motor Vehicles - 25% straight line

Intangible assets amortisation policy
Amortisation 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:

Goodwill - 10% straight line

Valuation information and policy
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 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.

Financial instruments

Financial liabilities are classified and accounted for, according to the substance of the contractual arrangements, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its financial liabilities.

RELATED PARTY TRANSACTIONS

D.P. Thompson and Ms. T.A. Lyons are directors and controlling shareholders of Monument Foods Limited.

During the financial year, Aspins Bakery Limited sold goods, at market price, to Monument Foods Limited of £243,935 (2012 - £314,274).

At 30th December 2013, £30,211 (2012 - £80,446) was outstanding and is included in trade debtors.

Aspins Bakery Limited paid a management charge of £7,016 (2012 - £8,085) to Monument Foods Limited and made purchases of £27,643 (2012 - £7,733) from Monument Foods Limited during the financial year. An unpaid amount of £Nil (2012 - £12,248) as at 30th December 2013 is included in trade creditors.

At 30th December 2013, a loan amount of £22,487 (2012 - £11,912) was due to Monument Foods Limited and in shown in year end creditors.

No other transactions with related parties were undertaken such as are required to be disclosed under the Financial Reporting Standard for Smaller Entities (effective April 2008).