Abbreviated Company Accounts - ORACLE PRESTIGE HOTELS LTD.

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention as modified by the revaluation of land and buildings and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

Turnover policy
Turnover represents the amount of revenue receivable, excluding VAT, from hotel accommodation and also includes bar and food takings and other miscellaneous income.

Tangible assets depreciation policy
The company regularly obtains independent professional valuations of its freehold hotel properties, which are incorporated into the financial statements. Surpluses on the revaluation of properties are credited to a non-distributable reserve. On realisation of the assets, the surplus is released to the profit and loss account. Other fixed assets are included at cost. Depreciation is provided at rates calculated to write off the costs of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold buildings 2% straight line
Plant, machinery,fixtures, fittings and office equipment 10-20% reducing balance
Motor vehicles 25% straight line

No depreciation is provide on freehold land. Impairment reviews are carried out annually on all hotel properties and provisions made where appropriate.

Other accounting policies
Stocks are stated at the lower of cost and net realisable value. Cost is determined on a first in first out basis, and represents invoice price. Net realisable value is based on estimated selling price.

Deferred taxation
The charge for taxation is based on the profit for the year as adjusted for tax purposes. In accordance with the Financial Reporting Standard for Smaller Enterprises, full provision is made at the current rates for taxation deferred in respect of all timing differences other than revaluation gains unless a binding contract to sell a revalued asset exists at the balance sheet date. Deferred tax balances are not discounted.

The company's hotel property was revalued on 31 March 2008 by Knight Frank Property Consultants on an existing use basis. On the historical cost basis, hotel properties would have been included at £931,864 in both 2013 and 2014.