Abbreviated Company Accounts - CHATTELWORTH 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 amounts receivable for goods and services net of VAT and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery 25% on cost
Fixtures, fittings & equipment 25% on cost
Motor vehicles 25% on cost

Other accounting policies
Goodwill represents the excess of cost of acquisition over the fair value of the separable net assets of business acquired. Goodwill is amortised through the profit and loss account in equal instalments over its estimated useful life.

Stock and work in progress is valued at the lower of cost and estimated realisable value. Cost of raw materials is determined on the first in first out basis. In the case of work in progress and finished goods, cost includes all direct expenditure and production overheads based on the normal level of activity. Net realisable value is the price at which the stock can be released in the normal course of business, less further costs to completion of sale.

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.