Abbreviated Company Accounts - C V T VEHICLE SERVICES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Accounting convention
The accounts are prepared under the historic cost convention and comply with financial reporting standards of the Accounting Standards Board.

Turnover policy
Turnover represents the total invoice value, excluding value added tax, of sales made during the year.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Plant and machinery - 10% reducing balance
Fixtures, fittings and equipment - 25% reducing balance
Motor vehicles - 25% reducing balance

Other accounting policies
Stock and work-in-progress
Stock and work-in-progress are valued at the lower of cost and net realisable value

Deferred taxation
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's accounts. Deferred tax is provided in full on timing differences which result in an obligation to pay more (or less) tax at a future date, at the average tax rates that are expected to apply when timing differences reverse, based on current tax rates and laws.

Going concern
At 31 January 2015 there were net current liabilities of £12,341 and a deficiency of assets of £9,330. The company is dependant upon the continued support of the creditors voluntary agreement. It is understood that this support will continue for the foreseeable future. On this basis the director considers it appropriate to prepare financial statements on a going concern basis. These financial statements do not include any adjustments which would arise if the accounts had not been prepared on a going concern basis.