Abbreviated Company Accounts - ZOE 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 April 2008.

Turnover policy
Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

Other accounting policies
Investment properties
Investment properties are accounted for in accordance with SSAP 19 as follows:
"i) investment properties are revalued annually by the directors and the aggregate surplus or deficit is transferred to a revaluation reserve unless a deficit or its reversal, on an individual property is expected to be permanent, in which case its recognised profit and loss account for the period.
ii) no depreciation or amortisation is provided in respect of freehold investment properties and leasehold properties with over 20 years to run. "

Although the Companies Act would normally require the systematic annual depreciation of fixed assets, the directors believe that this policy of not providing depreciation or amortisation is necessary in order for the accounts to show a true and fair view, since the current value of the investment of properties, and changes in that current value, are of prime importance rather than a calculation of systematic annual depreciation. Depreciation or amortisation is only one of many factors reflected in the annual valuation, and the amount which might otherwise have been shown cannot be separately identified or quantified.

Group Accounting
Advantage has been taken of the exemptions available under the Companies Act 2006 from the need to prepare group accounts on the basis that the group qualifies as a small group.