Abbreviated Company Accounts - PROBATE & ESTATE ADMINISTRATION LTD

1Accounting Policies

Turnover policy
The turnover shown in the profit and loss account represents the value of work performed during
the year,exclusive of Value Added Tax.
Services provided during the year,which at the balance sheet date have not been billed to
clients,have been recognised as turnover in accordance with UITF 40 and included in the
balance sheet as accrued income. Turnover recognised in this manner is based upon an
assessment of the fair value of the services provided at the balance sheet date as a proportion of
the total value of the engagement.

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:
Fixtures & Fittings - 20% reducing balance
Equipment - 20% reducing balance

Other accounting policies
Basis of accounting
The financial statements have been prepared under the historical cost convention, and in
accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Fixed assets
All fixed assets are initially recorded at cost.

Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of
ownership remain with the lessor are charged against profits on a straight line basis over the
period of the lease.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not
reversed at the balance sheet date where transactions or events have occurred at that date that
will result in an obligation to pay more, or a right to pay less or to receive more tax.
The only exception is that deferred tax assets are recognised only to the extent that the directors
consider that it is more likely than not that there will be suitable taxable profits from which the
future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in
the periods in which timing differences reverse, based on tax rates and laws enacted or
substantively enacted at the balance sheet date.

Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the
contractual arrangements entered into. An equity instrument is any contract that evidences a
residual interest in the assets of the entity after deducting all of its financial liabilities.