1Accounting Policies

Basis of measurement and preparation of accounts
The accounts are 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 invoice value, excluding value added tax, 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 asset over its expected useful life, as follows:
Plant and machinery - 15% reducing balance
Fixtures, fittings and equipment - 15% reducing balance
Motor vehicles - 25% reducing balance

Other accounting policies
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 5 years.

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, with the following exception:
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 reversal 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 laws enacted or substantively enacted at the balance sheet date.

Transactions with directors
The directors jointly own the company's trading premises which are leased to the company at a rent of £7,200 per annum (2015 £3,350).
During the year, the directors received dividends totalling £28,000 (2015 £27,000).