Abbreviated Company Accounts - SEATON BEACH CAFE LTD

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
The turnover shown in the profit and loss account represents amounts invoiced during
the year, exclusive of Value Added Tax.

Tangible assets depreciation policy
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:
Equipment - 20% reducing balance basis
Barbecue Area - 15% reducing balance basis
Motor Vehicles - 25% reducing balance basis
Dishwasher Room - 15% reducing balance basis

Intangible assets amortisation policy
Amortisation 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:
Goodwill - 5% straight line basis

Valuation information and policy
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.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not
reversed at the balance sheet date where transactions or events have occurred at that date
that will result in an obligation to pay more, or a right to pay less or to receive more tax.

Other accounting policies
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 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.

All fixed assets are initially recorded at cost.