Abbreviated Company Accounts - BREAD OF HEAVEN BAKERY 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.

Turnover policy
Turnover comprises the value of sales (excluding VAT and similar taxes and trade discounts) of and services in the normal course of business.

Tangible assets depreciation policy
Fixed Assets are shown at historical cost. Depreciation is provided after taking into account any grants receivable, at the following annual rate sin order to write off each asset over its estimated useful life by the reducing balance method. Plant & Machinery 25%, Equipment 25%, Fixtures & Fittings - 25%, Motor Vehicles - 25%

Intangible assets amortisation policy
Intangible fixed assets (including purchased goodwill and patents) are amoritised at rates calculated to write off the assets on a straight line basis over their useful economic lives, not to exceed twenty years. Impairment of intangible assets is only reviewed where circumstances indicate that carrying value of an asset may not be fully recoverable.

Valuation information and policy
Stocks are stated at the lower of cost and net realisable value. Cost incurred in bringing each product to its present location and condition is based on purchase cost on a first-in, first-out basis, including transport.