Abbreviated Company Accounts - VANGUARD PROCESSING EQUIPMENT LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared in accordance with applicable accounting standards. The particular accounting policies adopted are as follows:

Accounting Convention
The financial statements are prepared under the historical cost convention.

Tangible assets depreciation policy
Depreciation is provided on a straight line or reducing balance basis over the expected useful lives of each category of tangible fixed assets:

Freehold Buildings 2.5% per annum on cost

Plant and Machinery 10% per annum on written down value

Motor Vehicles 33.33% per annum on written down value

Fixtures and Fittings 20% and 33.33% per annum on written down value

Other accounting policies
Stocks
Stocks are stated at the lower of cost and net realisable value. Cost includes all direct costs incurred in bringing the stocks to their present location and condition.

Foreign Currency Transaction
Assets and liabilities denominated in foreign currency are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated at the rate on the date of the transactions. All exchange rate differences are dealt with through the profit and loss account.

Deferred Taxation
Deferred taxation is recognised in respect of all timing differences, between the treatment of certain items for accounts purposes and their treatment for tax purposes, that have originated but not reversed by the balance sheet date.

Deferred taxation is not recognised when assets are revalued unless, by the balance sheet date, the company has entered into a binding agreement to sell the assets and recognised the gains and losses expected to arise on sale or where assets have been sold and it is expected that the taxable gain will be rolled over into a replacement asset.

Pension Costs
The company has a defined contribution pension scheme. The cost of the contributions made by the company to the scheme are charged to the profit and loss account as incurred.


Cash Flow Statement
The company qualifies as a small company under the Companies Act 2006. The directors have elected to take advantage of the exemptions under FRS 1 not to prepare a cash flow statement.