Abbreviated Company Accounts - CONTESSA PROPERTY & INVESTMENT LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy
The turnover shown in the profit and loss account represents revenue recognised by the company in respect of rental income and the profit or loss on disposal of property, all exclusive of Value Added Tax.

Tangible assets depreciation policy
Depreciation is provided, after taking account of any grants receivable, at the following annual rates in order to write off each asset over its estimated useful life: Fixtures and fittings - 33.33% on cost; and Office equipment (including computer equipment) - 33.33% on cost.

Intangible assets amortisation policy
Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight-line basis over their estimated useful economic lives, not to exceed twenty years. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

Valuation information and policy
In accordance with the Statement of Standard Accounting Practice Number 19, those of the company's properties that are held for long-term investment are included in the balance sheet at their open market values. The surplus or deficit on revaluation of such investment properties is transferred to the investment property revaluation reserve. Stocks and work-in-progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Other accounting policies
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Provision for deferred tax is not recognised on revaluation gains unless at the balance sheet date there was a binding commitment to sell the revalued asset.