Abbreviated Company Accounts - AVOCA SYSTEMS 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 January 2015).

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
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Fixtures, fittings and equipment 33.33% reducing balance

Intangible assets amortisation policy
Expenditure directly attributable to the development of a software product has been capitalised as an intangible fixed asset to be matched against future revenue. The asset is expected to have a useful life of three years and shall be amortised on a straight line basis once the asset is ready for use. Impairment occurs when the carrying value of the product exceeds its recoverable value, which is based on the future anticipated net revenues from the product. The carrying values are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

Other accounting policies
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.

Deferred taxation
Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse.