Abbreviated Company Accounts - ABERDEEN & NORTH EAST HEATING 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 comprises the invoiced value of goods and services supplied by the company, net of Value
Added Tax and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation.
Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their
estimated residual value, over their expected useful lives on the following bases:
Land and Buildings 4% per annum of cost
Plant and Machinery 15% per annum reducing basis
Motor Vehicles 25% per annum reducing basis.

Intangible assets amortisation policy
Goodwill is the difference between the amount paid on the acquisition of a business and the
aggregate fair value of its separable net assets. It is being written off in equal annual instalments over its estimated economic life.

Other accounting policies
Stocks are valued at the lower of cost and net realisable value after making due allowance for
obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.