Annual Report & Accounts - Countrywide Farmers

Notes to the Financial Statements
For the year ended 31 May 2008
1) ACCOUNTING POLICIES
Basis of accounting
The financial statements have been prepared in accordance with applicable Accounting Standards in the United Kingdom and
under the historical cost accounting rules, as adjusted for the revaluation of properties. A summary of the more important
accounting policies is set out below.
Basis of consolidation
The financial statements of the Group represent the consolidation of Countrywide Farmers plc and its subsidiary
undertakings. All material inter-company transactions and balances are eliminated. In the case of acquisitions and disposals
of businesses, the results of trading are consolidated from or to the date upon which control passes.
Joint Ventures
Group interests in Joint Ventures are shown on the face of the profit and loss account and balance sheet in accordance with
FRS 9 'Associates and Joint Ventures' and are consolidated on the gross equity basis.
Investments
The Group's investments are stated at the lower of cost and net realisable value.
Income from investments
Income from investments is included in the financial statements when the amounts are received.
Turnover
Turnover represents the net amount received and receivable in respect of goods and services supplied to external customers
in the normal course of business, excluding value added tax.
Intangible fixed assets
Intangible fixed assets comprise goodwill which represents the excess or deficit of the fair value of the consideration paid over
the fair value of the identifiable net assets acquired. Goodwill is carried within the intangible assets on the balance sheet,
and written off through the profit and loss account over its estimated economic life.
Tangible fixed assets
Tangible fixed assets other than land and buildings are stated at cost less depreciation and provision for any impairment. Land
and buildings are shown at an independent valuation on an existing use basis for non specialised properties and at open
market value where properties are surplus to requirements. The valuations are performed by a qualified external valuer
every five years and updated every three years after the original valuation. Valuations are also updated in the intervening years
if there are material changes in value. All other plant and equipment is stated at historical cost less depreciation.
Depreciation is provided to write off the cost or valuation, less estimated residual values of all tangible assets, (except for
freehold land) evenly over their expected economic lives. The principal periods and annual rates used for this purpose are
as follows:-
Freehold buildings 2.5% p.a. straight line
Leasehold property 2.5% - 10% p.a. straight line
Plant and machinery 5% - 33.3% p.a. straight line
Vehicles
20% - 25% p.a. straight line
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