Abbreviated Company Accounts - BELMONT BATHROOMS 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 the net invoiced sales value of goods and services, excluding value added tax.

Tangible assets depreciation policy
Depreciation is provided at the following rates in order to write off each asset over its estimated useful life:

Motor vehicles - 25% per annum on cost
Leasehold property fixtures and fittings - over the term of the lease
Office fixtures and equipment - 20% per annum on cost
Computer equipment - 33% per annum on cost

Other accounting policies
Cash flow statement

The accounts 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 Financial Reporting Standard for Smaller Entities (effective January 2015).

Deferred taxation

Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods from those in which thay are included in the company's accounts. Deferred tax is provided in full on timing differences which result in an obligation to pay more (or less) tax at a future date at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.

Stock

Trading stock is shown at the lower of cost and net realisable value.

Showroom display stock is shown at cost less a provision for diminution in value to write off this stock over a period of four years.