Abbreviated Company Accounts - EDWARDS DESIGNER MENSWEAR 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 represents net invoiced sales of goods, excluding value added tax

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated
useful life.

Plant and machinery: 25% on reducing balance

Intangible assets amortisation policy
Goodwill
Goodwill, being the amount paid in connection with the acquisition of business in 2008, is being amortised
evenly over its estimated useful life of ten years.

Franchise investment
Franchise investment is capitalised and written off on a straight line basis over the term of agreement.

Valuation information and policy
Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete
and slow moving items.

Other accounting policies
Deferred tax
Full provision is made for deferred tax liabilities arising from all timing differences between the recognition
of gains and losses in the financial statements and recognition in the tax computation, except for those
timing differences in respect of which the standard specifies that deferred tax should not be recognised.
Deferred liabilities are calculated at the tax rates expected to be effective at the time the timing differences
are expected to reverse.