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 represents the value of work done during the year exclusive of value added tax.

Tangible assets depreciation policy
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 FRS11 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 & Equipment 20% reducing balance basis
Computers 33.33% straightline basis
Motor Vehicles 30% reducing balance basis.

Other accounting policies
Cashflow statement
The Company has taken advantage of the exemption in Financial Reporting standard NO1 from the requirement to produce a cashflow statement on the grounds that it is a small company.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

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.

Leasing
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element has been charged to the profit and loss account under the straight line basis in accordance with SSAP 21