Abbreviated Company Accounts - CANOE SPORT 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 January 2015).
On 30 October 2015 the director decided that the company had no realistic alternative but to cease trading. Despite significant efforts, sales had continued to fall and the company's liabilities continued to exceed its assets. The director therefore took the decision to close the business shortly thereafter and make the employees redundant. At 31 October 2015 all fixed and current assets were stated at the lower of cost and estimated net realisable value. All these assets were sold during the year at fair value. All costs relating to the closure of the business, which have been identified, are included in the accounts.

Turnover policy
Turnover represents the value of goods dispatched during the year. The value is calculated at selling price net of discounts and Value Added Tax.

Tangible assets depreciation policy
Tangible fixed assets were stated at cost less depreciation, subject to an impairment review at 31 October 2015 to reduce the net book value to likely sale value following closure of the business. Following the closure of the business all fixed assets were sold at fair value.
Depreciation was calculated so as to write off the cost of an asset, less its estimated residual value, on a reducing balance basis, over the useful economic life of that asset as follows:
plant and machinery - 15% per annum;
fixtures, fittings and equipment - 25% per annum.

Valuation information and policy
Stock comprises goods purchased for resale and is stated at the lower of cost and net realisable value. Cost is purchase price less trade discounts, calculated using the first-in, first-out method. Net realisable value is calculated as selling price less selling and distribution costs.

Other accounting policies
Rentals under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.