Abbreviated Company Accounts - LEWIS HARDING LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Accounting policies
Accounting convention
The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The company has net liabilities at the balance sheet date of £108,522 (2013 - £75,775). The directors have invested funds to establish the company and develop a product line. The directors expect the company to generate sales in the following accounting period and will continue to support the company's cash flow requirements until the company generates sufficient profits from its operations to restore its working capital to more effective levels. As a result the going concern basis of accounting has been adopted.

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% reducing balance
Fixtures, fittings & equipment - 25% reducing balance

Other accounting policies
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the average rate ruling throughout the year. All differences are taken to profit and loss account.