Rye Town Council
Notes to the Accounts
For The Year Ended 31 March 2005
1	Principal Accounting Policies
	Accounting Convention
	The accounts have been prepared in accordance with the Accounts and Audit Regulations 2003 and with guidance from Governance and Accountability in Local Councils in England and Wales: A Practitioners Guide.
	Fixed Assets
	All expenditure on the acquisition, creation or enhancement of fixed assets is reported in the notes to the accounts, provided that the fixed asset yields benefits to the authority and the services it provides, for a period of more than one year. The year end values are stated on the following basis:
	Land, operational properties and other operational assets are reported in the notes to the accounts at current insurance values as approximating to the lower of current replacement cost and net realisable value.
	During the year the following valuations were reduced by:
	Vehicles and Equipment £4,615
	Debtors and Creditors
	The revenue accounts of the Council are maintained on an accruals basis in accordance with the guide. That is that sums due to or from the Council during the year are included whether or not the cash has actually been received or paid in the year. Exceptions to this are payment of insurance premiums and regular quarterly accounts (e.g. telephone, electricity). This policy is applied consistently each year. Therefore, it will not have a material effect on the year's accounts or on the Council's annual budget.
	Stocks and Work In Progress
	Stocks held at the Heritage Centre and stocks of 'Ryennium', the Millennium Medal and the Golden Jubilee Mug held at the Town Hall are valued at cost. All other stocks have been treated as consumed because their value was not material.
	External Loan Payments
	The Council is not required  to incorporate external borrowings in its Balance Sheet. Details are shown in Note 13.
	Leases
	The Council has no commitments under finance leases. Rentals payable under operating leases are charged to revenue on an accruals basis.