Abbreviated Company Accounts - SMH LEISURE 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 comprises revenue recognised by the company in respect of membership fees,goods and services supplied during the period, exclusive of Value Added Tax.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the fixed assets cost, less their estimated residual value, over their expected useful lives on the following bases:
Long term leasehold property & integral features - straight-line over 5 years
Plant & Machinery,Equipment,Fixtures & Fittings - straight-line over 5 or 3 years

Intangible assets amortisation policy
Franchise fee is amortised to the Profit and Loss account over its useful economic life.
Franchise fee - straight-line over 5 years.

Other accounting policies
Going Concern - The financial statements have been prepared under the going concern basis in the expectation that the directors and shareholders will continue to support the company as necessary.

Stocks - Stocks are valued at the lower of cost and net realisable value making due allowance for obsolete and slow moving stocks.

Cash flow - The financial statements do not include a cash flow statement because the company,as a small reporting entity, is exempt from the requirement to prepare such a statement under the Financial Reporting Standard for smaller Entities (effective April 2008).