Abbreviated Company Accounts - PROPHETIC TECHNOLOGY LTD

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 value, net of value added tax and discounts, of goods provided to
customers and work carried out in respect of services provided to customers.

Tangible assets depreciation policy
Fixed assets are recognised at initial cost. Depreciation has then been provided at the following
rates in order to write off the assets over their estimated useful lives.

Plant and machinery 3 Years straight line

Other accounting policies
Deferred taxation
Full provision is made for deferred taxation resulting from timing differences between the
recognition of fixed asset depreciaton in the accounts and the respective capital allowances
applied for tax purposes. Deferred taxation is calculated at the tax rate which is expected to apply
in the periods when the timing differences will reverse. This year deferred tax has been calculated
at 20%.

Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of
exchange ruling at the balance sheet date. All differences are taken to the profit and loss
account.

Pensions
The company operates a defined contribution pension scheme. Contributions are charged to the
profit and loss account as they become payable in accordance with the rules of the scheme.

4Transactions with directors