1Accounting Policies

Basis of measurement and preparation of accounts
The accounts are prepared under the historical cost convention and comply with financial reporting standards of the Accounting Standards Board.

Turnover policy
Turnover represents the total invoice value of sales made during the year

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

Equipment – 15% reducing balance
Office Equipment – 20% reducing balance

Other accounting policies
Stock
Stock is valued at the loser of cost and net realisable value.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax, with the following exceptions.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversals of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and law enacted or substantively enacted at the balance sheet date

Going concern
Although the company had net liabilities at the balance sheet date, the director believes he has secured sufficient funding to enable the company to continue trading. The accounts are therefore prepared on the going concern basis