2Accounting Policies

Basis of measurement and preparation of accounts
Accounting preparation

Basis of preparation
Accounts have been prepared under the historical cost convention and in accordance with The Reporting Standard applicable in the UK : Confirmation of compliance with the applicable accounting standard (e.g., FRS 102 Section 1A or FRS 105 for micro-entities) and the use of the historical cost convention (as modified by any revaluations).

Turnover
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 been 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 the work performed to date to the total estimated contract costs.

Foreign currency translation.
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charges to profit or loss.