Abbreviated Company Accounts - THE GENERAL PACKAGING COMPANY LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy
Revenue - described as turnover - is the value of goods (net of VAT) provided to customers during the year, plus the value of work (net of VAT) performed during the year with respect to services.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings and equipment: 20% on cost

Motor Vehicles: 33% on cost

Other accounting policies
Investments:
Current asset investments are stated at the lower of cost or net realisable value.

Deferred Taxation:
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

Provisions:
Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the balance sheet date and that a payment will be required in a settlement that can be estimated reliably. Where material, provisions are calculated on a discounted basis.

Debtors:
Factored debts are included on the balance sheet within debtors. The proceeds received from the factor are included as secured liabilities. Factoring charges are recognised as they accrue and included within interest payable and similar charges.