Abbreviated Company Accounts - CROFTY SHED CENTRE LIMITED

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 provided on tangible fixed assets so as to write off the cost or valuation, less any estimated
residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate
Fixtures, fittings and equipment 25% straight line
Motor vehicles 20% straight line

Intangible assets amortisation policy
Acquired goodwill is written off in equal instalments over its useful economic life of 20 years
Asset class Amortisation method and rate
Goodwill 5% Straight Line

Other accounting policies
The Company is able to meet its day to day working capital requirements through the provision of a loan from
the Companys Bankers, as well as support from the Company Director. The accounts have been drawn up on a
going concern basis asuming that this support continues for the forseeable future.
Stock
Stock is valued at the lower of cost and net realisable value.
Hire purchase and leasing
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of
the asset have passed to the company, are capitalised in the balance sheet as tangible fixed assets and are
depreciated over the shorter of the lease term and their useful lives. The capital elements of future obligations
under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is
charged to the profit and loss account over the period of the lease and represents a constant proportion of the
balance of capital repayments outstanding. Assets held under hire purchase agreements are capitalised as
tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital
element of future finance payments is included within creditors. Finance charges are allocated to accounting
periods over the length of the contract and represent a constant proportion of the balance of capital repayments
outstanding.
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.