The directors acknowledge their responsibilities for:

 

(1)

Ensuring that the company keeps proper accounting records which comply with section 386 and

 

(2)

Preparing financial statements which give a true and fair view of the situation of the company at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of section 393 and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the company

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company and purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives. The capital elements of future obligations under the leases and hire purchase contracts are included as liabilities in the balance sheet.

 

 

Deferred taxation is recognised in respect of all timings differences that have originated but not reversed at the balance sheet date when transactions or events have occurred at that date that will result in an obligation to pay more or at a right to pay less or receive more tax with the following exceptions:

 

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustment) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets only to the extent that at the balance sheet date there is binding agreement to dispose of the assets concerned. However, no provision is made where, based on all available evidence at the balance sheet date is more likely that not that the taxable gain will be rolled over into replacement assets and charged to tax only where that replacement assets are sold.

 

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely that not there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

 

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.