Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of five years.

Development costs are being amortised evenly over their estimated useful life of five years.

Software development costs are capitalised when it is probable that the software will generate economic benefits for the company and such costs can be measured reliably. These costs are capitalised on the Balance Sheet in the year in which they are incurred and are subsequently amortised over the useful economic life of the software of 5 years. The useful economic life is reviewed by the directors if there are any indications of impairment, and any impairment charges are debited to the Profit and Loss in full in that year. Development costs which do not meet the criteria above are charged to the Profit and Loss when they are incurred.

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.