Abbreviated Company Accounts - PRITCHARDS VEHICLE SALES AND RENTAL LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Accounting convention
The financial statements are prepared under the historical cost convention

Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (expect as otherwise stated).

Turnover policy
Turnover represents amount receivable for goods and services, net of VAT and trade discounts

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows;

Land and buildings Freehold 0%
Plant and machinery 25% reducing balance
Fixtures, fittings & equipment 20% Reducing balance
Motor vehicles 20% Reducing balance

Other accounting policies
Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term

Stock
Stock is valued at the lower of cost and net realisable value.

Long term contracts
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account

Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted