Abbreviated Company Accounts - J. SIMMONDS-HUGO LIMITED

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 April 2008.

Despite an uncertain economic outlook inventory orders continue to be received and sales are expected to be consistent next year. The directors have therefore adopted the going concern basis of accounts preparation.

Turnover policy
Turnover represents amounts receivable for services net of VAT using the flat rate scheme and after adjusting for work in progress.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Office Equipment 15% Reducing Balance Method

Other accounting policies
Investment properties are included in the balance sheet at their open market value. Depreciation is provided only on those investment properties which are leasehold and where the unexpired lease term is less than 20 years.

Although this accounting policy is in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the director compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.

3Fixed assets Investments
Current asset investments are stated at the lower of cost and net realisable value.