Abbreviated Company Accounts - AVERY ESTATE AGENTS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements 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 represents amounts chargeable, net of value added tax, in respect of the sale of
goods and services to customers.

Tangible assets depreciation policy
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less
any estimated residual value, over their expected useful economic life as follows:
Asset class - Depreciation method and rate
Land & Buildings - No charge
Motor Vehicles - 18% Reducing Balance
Office Equipment - 18% Reducing Balance

Intangible assets amortisation policy
Amortisation is provided on intangible fixed assets so as to write off the cost or valuation, less
any estimated residual value, over their expected useful economic life as follows:
Asset class - Amortisation method and rate
Goodwill - No charge

Other accounting policies
Goodwill
Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on
a straight line basis over its useful economic life. It is reviewed for impairment at the end of
the first full financial year following the acquisition and in other periods if events or changes in
circumstances indicate that the carrying value may not be recoverable.

Hire purchase and leasing
Rentals payable under operating leases are charged in the profit and loss account on a
straight line basis over the lease term.
Assets held under finance leases, which are leases where substantially all the risks and
rewards of ownership of the asset have passed to the company, are capitalised in the
balance sheet as tangible fixed assets and are depreciated over the shorter of the lease
term and their useful lives. The capital elements of future obligations under the leases are
included as liabilities in the balance sheet. The interest element of the rental obligation is
charged to the profit and loss account over the period of the lease and represents a
constant proportion of the balance of capital repayments outstanding. Assets held under
hire purchase agreements are capitalised as tangible fixed assets and are depreciated over
the shorter of the lease term and their useful lives. The capital element of future finance
payments is included within creditors. Finance charges are allocated to accounting periods
over the length of the contract and represent a constant proportion of the balance of
capital repayments outstanding.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the
contractual arrangement, as 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 liabilities. Where shares are issued, any component that
creates a financial liability of the company is presented as a liability in the balance sheet.
The corresponding dividends relating to the liability component are charged as interest
expense in the profit and loss account.