Abbreviated Company Accounts - WONDERLUST PRODUCTIONS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared on a going concern basis which presumes that the Company will continue to trade for the foreseeable future. This is dependent on the continued support of the major creditor, who is the Company’s sole director. In the opinion of the director it is appropriate to prepare the financial statements on a going concern basis.

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 represents amounts receivable in respect of goods and services provided, excluding value added tax.

Tangible assets depreciation policy
Depreciation is provided on a straight line basis at rates calculated to write down the cost of the assets to their residual values over their estimated useful lives.
The estimated useful lives used are as follows:
Plant and machinery - 3 to 5 years

Other accounting policies
Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the profit and loss account as incurred.

4Transactions with directors

Included in other creditors due after more than one year is an amount of £239,933 (2013 £232,184) owed to Mr. D Galbraith, the Company’s director. No fixed interest rates or repayment terms apply, but Mr Galbraith has undertaken not to call for repayment of the amount before 1 March 2015.