1Accounting Policies

Basis of measurement and preparation of accounts
The Financial Statements 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 value, net of value added tax, of goods and services supplied to customers.

Tangible assets depreciation policy
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Office equipment 20% reducing balance
Plant & machinery 20% reducing balance

Other accounting policies
Stocks
Stock is valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.
Cost is the expenditure which has been incurred to bring the product or service to a saleable condition.
Net realisable value is the actual or estimated selling price less further costs to complete and costs to be incurred in marketing, selling and distributing.

Deferred Taxation
Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the financial statements and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse.

Leasing and hire purchase commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability.
The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.
Rentals paid under operating leases are charged to income on a straight line basis over the lease term.