Abbreviated Company Accounts - J. & R. KILLICK LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Basis of Preparation
The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy
Turnover represents amounts chargeable in respect of the sale of goods and services to customers.

Tangible assets depreciation policy
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows :

Plant and Machinery - 10% per annum
Motor Vehicles - 20% per annum

Other accounting policies
Stock
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks.

Hire Purchase and Leasing
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Financial Instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The correspondence dividends relating to the liability component are charged as interest expense in the profit and loss account.