2Accounting 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.

Turnover policy
urnover
Turnover is measured at the fair value of the consideration received or receivable, net of
discounts and value added taxes. Turnover includes revenue earned from the sale of goods
and from the rendering of services. Turnover from the sale of goods is recognised when the
significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover
from the rendering of services is recognised by reference to the stage of completion of the
contract. The stage of completion of a contract is measured by comparing the costs incurred
for work performed to date to the total estimated contract costs.

Tangible assets depreciation policy
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any
accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other
than freehold land, at rates calculated to write off the cost, less estimated residual value, of
each asset evenly over its expected useful life, as follows:
Plant and machinery
Debtors
25% reducing balance