THE ALEXANDER BEARD GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2012
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1.
ACCOUNTING POLICIES
1.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention as modified by
the revaluation of fixed asset investments and in accordance with applicable accounting standards.
1.2 Basis of consolidation
The financial statements consolidate the accounts of The Alexander Beard Group Plc and all of its
subsidiary undertakings ('subsidiaries').
1.3 Turnover
Turnover represents commissions received net of clawback.
1.4 Intangible fixed assets and amortisation
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value
of the identifiable assets and liabilities. It is amortised to the Profit and loss account over its
estimated economic life.
Amortisation is provided at the following rates:
Goodwill
-
5 - 6 years
1.5 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at
rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value,
over their expected useful lives on the following bases:
Fixtures & fittings
-
25% reducing balance
Office equipment
-
25% reducing balance
1.6 Investments
Subsidiary undertakings
Investments in subsidiaries are valued at cost less provision for impairment.
Other investments
Other investments held as fixed assets are shown at cost or valuation less provision for impairment.
Unlisted investments
Unlisted investments are accounted for under the alternative accounting rules and are revalued with
the unrealised gains being shown in the revaluation reserve.
1.7 Operating leases
Rentals under operating leases are charged to the Profit and loss account on a straight line basis
over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a
straight line basis over the period until the date the rent is expected to be adjusted to the prevailing
market rate.
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