After reviewing the company's forecasts and projections, the directors have 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 to represent a fair valuation based on available tangible and intangible resources.

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 rendering of services and from the sale of goods.

Revenue from the rendering of services is recognised by reference to the stage of completion of the contract and when the customer accepted the Terms and paid for the service. 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. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

The company accounts for government grants using the performance model in accordance with Section 24 of FRS 102.

Government grants are recognised at the fair value of the amount received or receivable when there is reasonable assurance that the company will comply with the conditions attaching to the grant and that the grant will be received. Grants subject to specified performance conditions are recognised in income when those conditions are satisfied. Grants that do not impose specified future performance conditions are recognised in income when the grant becomes receivable. Where grant proceeds are received before the conditions for recognition in income have been satisfied, the amount received is recognised as a liability until those conditions are met.

R&D expenditure credits are recognised gross within other operating income when there is reasonable assurance that the qualifying conditions of the applicable R&D scheme have been met, the amount can be measured reliably and the credit will be received. Any related corporation tax effect is recognised separately within taxation. Amounts receivable at the reporting date are included within debtors and separately identified where material.

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.