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 amounts receivable for goods and services net of VAT and trade discounts, calculated on the level of completion of particular contracts, including retentions.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery - 15% reducing balance basis
Motor vehicles - 20% reducing balance basis

Other accounting policies
Leasing and hire purchase commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Stock
Stocks have been valued at the lower of cost and net realisable value.
Work in progress is calculated on the basis of costs incurred on specific contracts. If the ultimate profitability of the contract can be assessed with reasonable certainty, having made a prudent allowance for future costs, then profit is recognised in proportion to the contract work completed. Immediate provision is made for foreseeable losses.

Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

Going concern
The financial statements have been prepared on the going concern basis as the director has agreed to continue to support the company to ensure that it will continue trading for at least 12 months from the date of approving the financial statements.

Ultimate parent company
The ultimate parent company is ADW Construction Limited, a company registered in Great Britain.