Abbreviated Company Accounts - FERNDOWN FABRICATIONS 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 the total invoice value, excluding value added tax, of sales made during the year.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its estimated useful life, as follows:
Plant and machinery - 15% on reducing balance
Fixtures,fittings and equipment -15% on reducing balance
Motor Vehicles - 25% on reducing balance

Other accounting policies
Stock: Stock is valued at the lower of cost and net realisable value.
Pensions: The pension costs charged in the financial year represent the contribution payable by the company during the year.
Deferred taxation: 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.
Going Concern: The directors and shareholders are prepared to support the company and therefore the accounts have been prepared on a going concern basis.