Abbreviated Company Accounts - GRIFFON MERLIN 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
Turnover comprises revenue from sale of copyrights in the works of literature and the connected services supplied, exclusive of Value Added Tax. Revenue is recognised in the period it is receivable.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Motor vehicles 25% reducing balance
Fixtures and fittings 25% reducing balance
Computer equipment 25% reducing balance

Other accounting policies
Going concern
The financial statements have been prepared on a going concern basis despite the fact that the balance sheet shows the company had net current liabilities of £2,475. The going concern basis would not be appropriate should the company be unable to continue trading, in which case adjustments would have to be made to reduce the value of assets to their recoverable amount, to provide for any further liabilities which might arise and to reclassify fixed assets as current assets. The directors intend to support the company, so that it is considered that the going concern basis of accounting is appropriate in the circumstances.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Profit and Loss Account.

Creditors amounts falling due within one year
The bank loan, of which £1,750 is repayable within one year, is personally guaranteed by J Holland, director and shareholder and is repayable in equal monthly instalments by October 2014.

Creditors amounts falling due after more than one year
The bank loan, of which £nil is repayable after more than one year, is personally guaranteed by J Holland, director and shareholder and is repayable in equal monthly instalments by October 2014.