Abbreviated Company Accounts - MITECH CONSULTANTS 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 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, machinery, furniture and fittings - 20% reducing balance
Computer equipment - 25% straight line
Motor vehicles - 25% reducing balance
Buildings - 15% reducing balance

Intangible assets amortisation policy
Investments
Fixed assets investments are stated at cost less provision for permanent diminution in value.

Investment properties
In accordance with SSAP 19

a. Investment properties are revalued annually and the surpluses or deficits are transferred to a revaluation reserve and

b. No depreciation is provided in respect of these properties.

The directors consider that this accounting policy results in the accounts giving a true and fair view.
Depreciation is only one of the many factors reflected in the revaluation and the amount that might
otherwise have been shown cannot be separately identified or quantified.

This does not comply with the requirements of S396 of the Companies Act 2006.

Other accounting policies
Stock and work in progress
Stocks are stated at the lower of cost and net realisable value. Cost of goods for resale is the actual purchase price. In accordance with Application note G of Financial Reporting Standard 21, work in progress is valued at selling price which includes the cost of materials and direct labour, an attributable proportion of overheads and unrealised profit.

Deferred taxation
Provision is made and maintained at current rates for taxation deferred as a result of differences in timing between the inclusion of items in the accounts and the corresponding charge or credit for tax purposes.

Hire purchasing commitments
Assets obtained under hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives.

The interest element of the rental obligations is charged to profit and loss account over the period of hire.

Lease assets
Equipment acquired under finance leases, which transfer to the lessee substantially all benefits and risks of ownership, and the capital element of the related rental obligations, are included in the balance sheet. The interest element of rental obligations is charged against profit in proportion to the reducing capital element outstanding. The equipment is depreciated over the shorter of the lease term and the estimated useful life of the asset.

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the profit and loss account on a straight line basis.

Pensions
The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Profit and Loss account.

3Fixed assets Investments
Freehold Property at cost £677,764 (2014 £677,764)