Abbreviated Company Accounts - PANIDEMA LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted, 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 comprises revenue recognised by the company in respect of goods and services supplied
during the year, exclusive of Value Added Tax 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 of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
S/Term Leasehold Property - over the period of the lease
Plant & machinery - 15% reducing balance
Motor vehicles - 25% straight line

Intangible assets amortisation policy
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the Profit and loss account over its estimated economic life.
Amortisation is provided at the following rates:
Goodwill - 20% straight line

Other accounting policies
Going concern
The directors have considered the going concern assumption and feel that it is an appropriate basis on which to prepare the accounts. The directors undertake that any amounts owed to them will only be paid after allowing for payment to all other unsecured creditors.
Cash flow
The financial statements do not include a Cash flow statement because the company, as a small reporting entity, is exempt from the requirement to prepare such a statement under the Financial Reporting Standard for Smaller Entities (effective April 2008).
Operating leases
Rentals under operating leases are charged to the Profit and loss account on a straight line basis over the lease term.
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.