Abbreviated Company Accounts - FIONNAR SPRINGS LTD.

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.

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 - 2% Straight line
Other tangible assets - 15-25% Reducing balance

Other accounting policies
Leasing and hire purchase commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible
assets and depreciated over the shorter of the lease term and their useful lives. Obligations
under such agreements are included in creditors net of the finance charge allocated to future
periods. The finance element of the rental payment is charged to the profit and loss account so
as to produce constant periodic rates of charge on the net obligations outstanding in each
period.

Stock
Stock is valued at the lower of cost and net realisable value.

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.
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.

Government grants
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the
profit and loss account over the expected useful life of the assets. Grants towards revenue
expenditure are released to the profit and loss account as the related expenditure is incurred.