1Accounting Policies

Basis of measurement and preparation of accounts
Basis of preparation of financial statements

The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with applicable accounting standards.

Turnover policy
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant and machinery - 20% reducing balance
Motor vehicles - 25% reducing balance
Furniture, fittings and equipment - 15% reducing balance

Other accounting policies
Stock

Stock is valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stock.

Deferred taxation

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing difference are expected to reverse.

Cash flow

The company has taken advantage of the exemption in Financial Reporting Standard No.1 from the requirement to produce a cash flow statement on the grounds that it is a small company.

3Fixed assets Investments
Investments

Investments held as fixed assets are shown at cost less provision for impairment.