Abbreviated Company Accounts - SWAT UK LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Basis of preparation of the financial statements
The financial statements have been prepared on a going concern basis under the historical cost convention as modified by the revaluation of freehold property and in accordance with the Companies Act 2006 and Financial Reporting Standards for Smaller Entities (effective April 2008). The principal accounting policies, which have been applied consistently, are set out below.



Turnover
Turnover represents amounts invoiced in respect of services, net of value added tax.
Turnover is recognised when the right to consideration is obtained through performance of the service.



Tangible fixed assets and depreciation

Tangible fixed assets are stated at historic cost or valuation less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for it's intended use.


Depreciation is calculated on a monthly basis to write down the cost of tangible fixed assets over their expected useful economic lives as follows:


Computer equipment and software 36% straight line per annum
Other equipment 30% reducing balance per annum
Fixtures and fittings 15% reducing balance per annum
Freehold property 2% straight line per annum
Motor vehicles 25% - 40% straight line per annum
Leasehold improvements Period of lease

The value of land is considered to be immaterial given the restrictive covenant over the use of freehold property. Hence the full cost of freehold land and buildings is being depreciated.


Freehold Property

Freehold property is stated at market value.

Stock

Stock is stated at the lower of cost and net realisable value.

Deferred taxation
Deferred taxation is provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and their treatments for tax purposes. Full provision is made for all material deferred tax liabilities except that deferred tax is not provided in respect of valuation gains unless there is a binding contract to sell the property.

Pension Costs

The company operates “personal pension plans” whereby the company agrees to pay for eligible employees, a defined contribution into the employee’s own personal pension scheme. The pension charge represents contributions payable by the company for the year. The company’s liability is limited to the amount of contribution. The liability for meeting future pension payments rest solely with the employee’s personal pension scheme.





Dilapidations

Dilapidations are provided for at the directors' best estimate of the amounts payable to return the
leasehold property to its original condition at the end of the lease.

Goodwill and amortisation
Goodwill represents the excess of the cost of acquisitions over the fair value of the trade and assets acquired at the date of acquisition. Goodwill is amortised on a straight line basis over the directors’ estimate of its useful economic life. The estimated economic life of goodwill is 5 years.


Leasing and hire purchase commitments
Where assets are financed by leasing agreements that give rights approximating to ownership, the assets are treated as if they had been purchased outright and capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.