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.

Turnover policy
Turnover represents net invoiced sales of goods and services excluding VAT.

Tangible assets depreciation policy
Depreciation is calculated to write down the cost of all tangible fixed assets over their expected useful economic lives at the following rates:

Equipment : 15% reducing balance
Fixtures & fittings : 15% reducing balance
Computer equipment : 3 years straight line

Other accounting policies
Stocks
Stock 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. Work in progress has been valued in accordance with UITF40.

Going concern basis of accounting
At the balance sheet date, the company's liabilities exceeded its assets. The company has received assurance from the director that he will continue to give financial support to the company for twelve months from the date of signing these financial statements. On this basis, the director considers it appropriate to prepare the accounts on a going concern basis. However, should the financial support mentioned above not be forthcoming, the going concern basis used in preparing the company's accounts may be invalid and adjustments would have to be made to reduce the value of assets to their realisable amount and to provide for any further liabilities which might arise. The accounts do not include any adjustment to the company's assets or liabilities that might be necessary should this basis not continue to be appropriate.