Abbreviated Company Accounts - LOCH NESS COUNTRY HOUSE HOTEL LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts are prepared under the historical cost convention and in accordance with the Financial
Reporting Standard for Smaller Entities (effective January 2015).

Turnover policy
Turnover represents the total invoice value, excluding value added tax, of sales made during the year
and derives from the provision of goods falling within the company's ordinary activities.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its
expected useful life, as follows:
Land and buildings - Nil

Valuation information and policy
Investment properties are accounted for as follows:
Investment properties are revalued annually and the aggregate surplus or deficit is transferred to the
revaluation reserve. When a deficit (or its reversal) on an individual investment property is expected to
be permanent however, it is charged (credited) to the profit and loss account of the period. No
depreciation or amortisation is provided in respect of freehold investment properties.
Although the Companies Act would normally require the systematic annual depreciation of fixed assets,
the directors believe that the policy of not providing depreciation is necessary in order for the accounts
to give a true and fair view since the current value of the investment properties, and changes to that
current value, are of prime importance rather than a calculation of systematic annual depreciation.
Depreciation is only one of the many factors reflected in the annual valuation and the amount which
might otherwise have been included cannot be separately identified or quantified.

Other accounting policies
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, with the following exceptions:
Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold;
Provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries, associates and joint ventures only to the extent that, at the balance sheet date, dividends have been accrued as receivable;
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing
differences can be deducted.
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.