Abbreviated Company Accounts - EDWARDS & ELLIOTT 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
Turnover represents net invoiced sales of goods, excluding VAT

Tangible assets depreciation policy
Depreciation is provided, after taking account of any grants receivable, at the following annual rates in order to write off each asset over its estimated useful life:
Plant & Machinery 33% reducing balance
Fixtures & Fittings 20% reducing balance
Motor vehicles 25% reducing balance

Intangible assets amortisation policy
Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible assets is reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

Other accounting policies
The company is controlled by the directors.

Future trading & current economic environment
Subsequent to the financial year end the company has experiences a significant reduction in business activity, resulting in significantly lower sales. However, costs are anticipated to reduce correspondingly and, whilst the company is dependant upon the continuation of existing banking and trading facilities, it should be able to operate within its overdraft. Despite serious doubts about future trading conditions, the directors are not aware of any reason why overdraft or other facilities will not be extended. As a result, they have adopted the going concern basis of accounting.