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 January 2015.

Turnover policy
Turnover represents the total value of goods, excluding value added tax, provided to customers during the year, plus the value of work, excluding value added tax, performed during the year with respect to services.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Land and buildings - Straight line over 10 years
Plant and machinery - 20% straight line
Fixtures, fittings and equipment - 25% straight line
Motor vehicles - 20% straight line
Tangible fixed assets are stated at cost less accumulated depreciation.

Other accounting policies
Stock and work in progress:-
Work in progress is valued at the lower of cost and net realisable value.

Long term contracts:-
Amounts recoverable on long term contracts, which are included in debtors are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments received on account.

Pensions:-
The pension costs charged in the financial statements represent the contribution payable by the company during the year.

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.

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 laws enacted or substantively enacted at the balance sheet date.

Ultimate parent undertaking:-
A A Beer Limited is a 100% owned subsidiary undertaking of AAB Construction Limited. AAB Construction Limited is a UK company. Group accounts have not been prepared as the group is a small group.