Abbreviated Company Accounts - ASTUTE DISPENSING 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
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
Motor vehicles .....................................................25% reducing balance
Fixtures and fittings .............................................20% reducing balance
Office equipment .................................................33% reducing balance

Other accounting policies
Going concern
The financial statements have been prepared on a going concern basis.
At the balance sheet date, the company was insolvent with a shareholder deficit of £24,288. Included in current liabilities are directors' loan accounts totalling £41,367. All of the directors have agreed not to demand repayment until the company is in a stable financial position and able to make repayment without causing cashflow problems.

Stock
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

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.