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
Turnover represents the value of work done during the year exclusive of value added tax. A sale is recognised on despatch of the goods to the customer which is the point at which the risks and rewards on ownership of the goods pass to the customer.

Tangible assets depreciation policy
Depreciation and diminution in value of assets
Tangible fixed assets are stated at cost less depreciation

Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold property has not been depreciated contrary to FRS 11 because the
property is well maintained on a continuous basis such that the standard
and performance of the property is well preserved and any depreciation
charge would be immaterial.

Plant and Equipment 20% reducing balance basis.
Computers 20% straight line basis.
Motor Vehicles 25% reducing balance basis.

Other accounting policies
Deferred taxation
Provision is made for taxation deferred as a result of material timing differences between the incidence of income and expenditure for taxation purposes, using the liability method, only to the extent that, in the opinion of the directors, there is a reasonable probability that a liability or asset will crystallise in the near future.

Included in other debtors is an overdrawn directors loan account which has now been repaid

Ultimate controlling party

In the opinion of the directors, Mr S Lockwood and Mrs J Lockwood who hold 57% of the issued share capital, are the ultimate controllers of the company.