1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective April 2015).

Turnover policy
The turnover shown in the profit and loss account represents revenue earned during the period, net of VAT and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

Tangible assets depreciation policy
Depreciation is provided, after taking account of any grants receivable, at the following annual rates in order to write off each asset over its estimated useful life. Freehold buildings - 2% on cost or revalued amounts, Plant and Machinery - 15% on cost, Fixtures and fittings - 15% on cost, Motor vehicles - 15% on cost subject to a maximum of £3,000.00 per annum charge. Software is 0% for now.

Intangible assets amortisation policy
Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight basis over their estimated useful economic lives, not to exceed twenty years. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

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.

Software revalued on 5th anniversary based on income generation capacity and not on cost of development. Whereby cost far outweigh projected income, excess incurred cost would be written off against accounts as ‘Off Balance Sheet’ against future income.

Other accounting policies
Off – Balance Sheet
Prudent Revaluation - till it is probable to realise sale of risk management and accounting software to £900.00 from £1,404,905.00, hence £1,404,005 was written off as Off Balance item in 2011 till these software solutions are implemented respectively for clients.

Where it is deemed valuation of software in development has less probability future sale accumulated cost would be written-off to off-balance derivation revaluation reserve and capitalise based on realised income future income.