1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention modified to include the revaluation of plant and machinery and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008)

Turnover policy
Turnover represents amounts receivable for goods net of VAT and trade discounts

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

Land and Buildings Freehold - 5% on cost
Land and Buildings Leasehold - 10% on cost
Plant and machinery - 2% on cost
Computer equipment - 20% on cost

The part of the annual depreciation charge on revalued assets which relates to the revaluation surplus is transferred from the revaluation reserve to the profit and loss account.

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

Stock and work in progress
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.