In the application of the company's accounting policies, the directors are required to make judgements, estimates and
assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of
the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount
of assets and liabilities are as follows.
Bad debt provision
A Provision for the impairment of trade debtors is established when there is objective evidence that the company will
not be able to collect all amounts due according to the original terms of the receivables.
Stock provision
A provision has been made at the year end to account for obsolete and slow moving stock based on historical sales
data and how long stock has been held for across the various stock categories