Abbreviated Company Accounts - PSL LONDON 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.

At the balance sheet date, the company's liabilities exceeded its assets. The company has received assurance from the director that he will continue to give financial support to the company for twelve months from the date of signing these financial statements.

On this basis, the director considers it appropriate to prepare the financial statements on a going concern basis. However, should the financial support mentioned above not be forthcoming, the going concern basis used in preparing the company's financial statements may be invalid and adjustments would have to be made to reduce the value of assets to their realisable amount and to provide for further liabilities which might arise. The financial statements do not include any adjustments to the company's assets or liabilities that might be necessary should this basis not be appropriate.

Turnover policy
Turnover represents the net invoiced value of sales of services rendered during the year, excluding value added tax, and derives from the company's ordinary activities.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation.

Depreciation is provided at the following annual rates in order to write off the cost less expected residual value of each asset over its estimated useful life:

Plant and machinery - 20% on cost
Fixtures and equipment - 20% on cost
Motor vehicles - 20% on cost

Intangible assets amortisation policy
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 20 years.