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.

The company meets its day to day working capital requirements through an overdraft facility.
The nature of the company's business is such that there can be considerable unpredictable variation in the timing of cash inflows. The director has considered cash flow information for the period ending 12 months from the date of their approval of these financial statements. On the basis of this cash flow information and discussions with the company's bankers, the director considers that the company will continue to operate within the facility currently agreed and within that which they expect will be agreed when the company's bankers are due to consider renewing the facility for a further year.
However, the margin of facilities over requirements is not large and, inherently there can be no certainty in relation to these matters. On this basis, the director considers it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of the overdraft facility by the company's bankers.

Turnover policy
Turnover comprises the gross sale proceeds from the sale of properties during the year. The company’s policy is to recognise a sale when substantively all the risks and rewards in connection with the goods have been passed to the buyer.

Rent receivable represents the rent accruing to the company up to the balance sheet date. Revenue billed but relating to periods after the balance sheet date are included in other creditors.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Plant and machinery 25% Reducing balance

Other accounting policies
Stock
Stock is valued at the lower of cost and net realisable value.