1Accounting 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.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings 10% on cost
Plant and machinery 25% on reducing balance

Valuation information and policy
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Other accounting policies
Deferred tax is provided in full on all timing differences between profits in the accounts and profits for taxation purposes which will result in an obligation to pay more (or less) tax at a future date, at the average tax rates which are expected to apply when the timing differences reverse, based on current tax rates and laws.

Contributions in respect of the company’s defined contribution pension scheme are charged to the profit and loss account for the year in which they are payable to the scheme.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

4Transactions with directors

The balance on the director's loan account was paid off in full by 20 January 2014.