2Accounting 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 amounts receivable from the sale of livestock, meat, breeding stock, grazing services, grants linked to trading activity, and any other income generated in the ordinary course of business. Turnover is recognised when the company has fulfilled its obligations to the customer and the income can be measured reliably.

Sales of livestock are recognised at the point at which ownership and risk pass to the buyer. Income from grazing, education or other services is recognised when the service has been provided.

Tangible assets depreciation policy
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment - 20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Valuation information and policy
The company’s assets and stock are valued on a prudent and consistent basis, using the best information available at the financial year end. Valuations are reviewed annually by the directors and are based on cost, market value, expected sale value, condition, age, quality and intended use.

Breeding livestock is held by the company as part of its ordinary farming trade. Breeding livestock are treated as fixed assets. Lambs and immature replacement females, including shearlings not yet lambed, are treated as current assets until maturity, at which point they are transferred to breeding livestock and become a fixed asset of the business.