| Notes to the 1. ACCOUNTING POLICIES


1.1 Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.


1.2Income


Since the introduction of GPT the rate of contribution has been agreed between the Association of British Bookmakers and the Greyhound Board of Great Britain Limited.


The current applicable rate is 0.6%. The company has no statutory power to collect its income and has to rely for verification on voluntary certificates supplied by the auditors of six major companies relating to the contributions they make: (in alphabetical order) Bet 365, Betfair, Coral Racing, William Hill, Ladbrokes and Tote Bookmakers. Income represents contributions received during the period.


1.3 Tangible fixed assets and depreciation 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:


Office equipment – 25% straight line


1.4 Deferred taxation Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.


A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.


Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.


Deferred tax assets and liabilities are not discounted.


1.5 Grants offered All grants approved by the directors during the period are charged to the income and expenditure account. Grants offered have been reduced by £77,610 in respect of grants approved in prior years which had not been taken up by 31 March 2011.


2. INCOME


The whole of the income is attributable to the company's principal activity. All income arose within the United Kingdom.


Financial Statements


12 Annual Report 2010-2011


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