Abbreviated Company Accounts - DEMORA ASSOCIATES LTD

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted,
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 amounts chargeable, net of value added tax, in respect of the sale of
goods and services to customers.

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual
value, over the useful economic life of that asset as follows:

Equipment 25% per annum on the reducing balance

Intangible assets amortisation policy
Amortisation is provided on intangible fixed assets so as to write off the cost, less any
estimated residual value, over their expected useful economic life as follows:

Goodwill over 20 years

Other accounting policies
Deferred tax
Deferred tax is recognised, without discounting, in respect of all timing differences between
the treatment of certain items for taxation and accounting purposes, which have arisen but
not reversed by the balance sheet date, except as required by the FRSSE.
Deferred tax is measured at the rates that are expected to apply in the periods when the
timing differences are expected to reverse, based on the tax rates and law enacted at the
balance sheet date.

Hire purchase and leasing
Rentals payable under operating leases are charged in the profit and loss account on a
straight line basis over the lease term.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the
contractual arrangement, as financial assets, financial liabilities or equity instruments. An
equity instrument is any contract that evidences a residual interest in the assets of the
company after deducting all of its liabilities. Where shares are issued, any component that
creates a financial liability of the company is presented as a liability in the balance sheet.
The corresponding dividends relating to the liability component are charged as interest
expense in the profit and loss account.

Pensions
The company operates a defined contribution pension scheme. Contributions are
recognised in the profit and loss account in the period in which they become payable in
accordance with the rules of the scheme.