Abbreviated Company Accounts - WILDFLOUR BAKERIES LTD

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 January 2015).

Turnover policy
Turnover is measured at the fair value of the consideration received or receivable, net of
discounts and value added taxes. Turnover includes revenue earned from the sale of goods and
from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

Tangible assets depreciation policy
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative
impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land,
at rates calculated to write off the cost, less estimated residual value, of each asset evenly over
its expected useful life, as follows:

Plant and machinery 25% reducing balance
Fixtures, fittings, tools and equipment 25% reducing balance

Other accounting policies
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to
recover tax paid in a previous period. Deferred tax is recognised in respect of all timing
differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Invoice factoring
The company uses an invoice factoring facility and retains all significant benefits and risks
relating to its invoiced debts. The gross amount of the invoiced debts are included within assets
and a corresponding liability in respect of proceeds received from the facility are shown within
liabilities. The interest and charges incurred from the factoring arrangement are recognised as
they accrue and are included in the profit and loss account as factoring charges and interest
charges.

4Transactions with directors

This loan is interest free and repayable on demand, if company funds are available.