Abbreviated Company Accounts - MY PC COMPOUNDS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
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).

Turnover policy
The turnover shown in the profit and loss account represents amounts invoiced during the
year, exclusive of Value Added Tax.
In respect of long-term contracts and contracts for on-going services, turnover represents
the value of work done in the year, including estimates of amounts not invoiced.
Turnover in respect of long-term contracts and contracts for on-going services is
recognised by reference to the stage of completion.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost.

Depreciation
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 - 25% Reducing balance method

Other accounting policies
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due
allowance for obsolete and slow moving items.

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of
exchange ruling at the balance sheet date. Transactions in foreign currencies are
translated into sterling at the rate of exchange ruling at the date of the transaction.
Exchange differences are taken into account in arriving at the operating profit.

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.
Where the contractual obligations of financial instruments (including share capital) are
equivalent to a similar debt instrument, those financial instruments are classed as
financial liabilities. Financial liabilities are presented as such in the balance sheet.
Finance costs and gains or losses relating to financial liabilities are included in the profit
and loss account. Finance costs are calculated so as to produce a constant rate of return
on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition
of a financial liability then this is classed as an equity instrument. Dividends and
distributions relating to equity instruments are debited direct to equity.