Abbreviated Company Accounts - API HOLDINGS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention and in accordance with the Financial reporting Standard for Smaller Entities ( affective April 2008 ). The accounts have been prepared on a going concern basis and make no allowance for any losses or costs that might arise if this were found to be inappropriate. The business is dependent upon the continued support of a major creditor who has indicated that repayment of the debt due to him is only necessary when the company is in a position to do so. On this basis the directors are of the view that the going concern basis is entirely appropriate.

Turnover policy
Turnover represents net invoiced sales of goods, excluding value added tax.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Other accounting policies
DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

RESEARCH AND EXPENDITURE
Expenditure incurred in the development of projects undertaken by the company is capitalised as an Intangible asset and included in the balance sheet on the basis of costs incurred. Such costs are capitalised only where the project to which they relate is clearly identifiable and the directors are satisfied that the project is feasible in technical and financial terms. Such costs will be amortised at rates to be determined on commencement of the commercial stage of the project for which development costs have been incurred.

HIRE PURCHASE AND LEASING COMMITMENTS
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Intangible assets comprise development costs less amounts received from the grant of a licence for use of certain rights arising from that development expenditure.