Stock and Work in progress Stock and Work in Progress are valued at the lower of cost and estimated selling price, less costs to complete and sell. Cost includes all costs of purchase, freight, irrecoverable taxes and other directly attributable costs which are incurred by the company in bringing the stock to its present location and condition. The cost methodology employed by the company is the first-in first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow moving and obsolete items of stock. Such provisions are recognised in profit or loss. Impairment Assets which are not carried at fair value are reviewed for evidence of impairment at each Balance Sheet date. Where the asset is showing indicators of impairment, the recoverable amount of the asset is estimated and then compared to the carrying value in the financial statements. Where the carrying amount is in excess of the recoverable amount, an impairment loss is recognised in profit or loss. Taxation Current tax represents the amount of tax [payable, (or receivable), in respect of taxable profit, or (loss), for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid, or (recovered), using the tax rates and laws which have been enacted, or substantively enacted, by the Balance Sheet date. Where payments to H M Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable. Deferred Tax Deferred Tax is recognised on all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all, or part, of the asset to be recovered. Unrelieved tax losses and other Deferred Tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of Deferred Tax liabilities or other future taxable profits. Deferred Tax is measured using the tax rates that have been enacted, or substantively enacted, by the Balance Sheet date, that are expected to apply to the reversal of timing differences. Going Concern The Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company, therefore, continues to adopt the Going Concern basis of accounting in preparing its financial statements.