Abbreviated Company Accounts - COMPUTERS ETC LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Accounting convention
The financial statements are prepared under the historical cost convention.
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied
consistently (except as otherwise stated).

Turnover policy
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows: Land and buildings Leasehold over 5 year lease term; Fixtures, fittings & equipment 20% reducing balance; Motor vehicles 25% reducing balance.

Intangible assets amortisation policy
Franchise costs are written off in equal annual instalments over its estimated useful economic life of 5 years.

Other accounting policies
Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the
lease term.
Stock
Stock is valued at the lower of cost and net realisable value.
Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the
treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
Exchange liabilities
The company purchases goods from members of the general public for a non cash consideration by
issuing exchange vouchers. The vouchers have an infinite life and can be redeemed for goods but not cash. The liability is included within other creditors.