Abbreviated Company Accounts - AZOTIC TECHNOLOGIES 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
Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to income so as to match them with expenditure to which they relate.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write-off each asset over its estimated useful life:
Laboratory and field equipment - 25% on cost
Fixtures and fittings - 25% on cost
Computer equipment - 33% on cost

Intangible assets amortisation policy
Intangible fixed assets are amortised at rates calculated to write-off the assets on a straight line basis over their estimated useful economic lives, not to exceed twenty years.
Impairment of intangible fixed assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

Other accounting policies
Research and development expenditure
Research expenditure is charged to the Profit & Loss Account in the period in which it is incurred. Development costs incurred are capitalised when all the following conditions are satisfied:
• completion of the intangible asset is technically feasible so that it will be available for use or sale, considering its commercial and technological feasibility;
• the Company intends to complete the intangible asset and use or sell it;
• the Company has the ability to use or sell the intangible asset;
• the intangible asset will generate probable future economic benefits;
• there are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
• the expenditure attributable to the intangible asset during its development can be measured reliably.
Development costs not meeting the above criteria for capitalisation are expensed as incurred.