Abbreviated Company Accounts - S.K.T. SERVICES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts 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 sales net of value added tax and discounts for goods and services provided to customers.

Tangible assets depreciation policy
Depreciation is provided at the following rates in order to write off each asset over its estimated useful life.
Equipment: 15% Reducing Balance
Freehold: Not Depreciated

Intangible assets amortisation policy
Goodwill is not being amortised.

Valuation information and policy
Stock
Stock is valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving items.

Other accounting policies
Deferred Taxation
Provision is made at current rates of tax for taxation deferred in respect of material timing differences between the recognition of gains and losses in the financial statements and their recognition in the tax computation, except to the extent that, in the opinion of the directors, there is reasonable probability that the tax liability will not arise in the foreseeable future.
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in periods in which the timing differences reverse, based on tax rates and the law enacted or substantively enacted at the balance sheet date.

In the opinion of the director the depreciation amount of the freehold property portion is immaterial.