Abbreviated Company Accounts - CRACKCODE LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts are prepared under the historical cost convention and the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy
Turnover represents revenue recognised in the accounts. Revenue is recognised when the company fulfils its contractual obligations to customers by supplying goods and services and excludes value added tax.

Tangible assets depreciation policy
Depreciation of tangible fixed assets is provided at the following annual rates in order to write off each asset over its estimated useful life:

Freehold building - 2% on cost
Fixtures and fittings - 10% straight line
Motor vehicles - 25% on cost
Plant and equipment - 10% and 20% straight line

No depreciation is provided on freehold land.

Intangible assets amortisation policy
Purchased goodwill is amortised through the profit and loss account over a period of 20 years.

Other accounting policies
Stocks

Stock is valued at the lower of cost and net realisable value, after making allowance for obsolete and slow moving items.

Leased assets

Fixed assets acquired under finance leases are included in the balance sheet at cost, appropriate provision being made for depreciation. The present value of the future rentals is shown as a liability. Interest payable in each period is charged to the profit and loss account in proportion to the amount outstanding under the lease. Operating lease rentals are charged to profit and loss account as incurred.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed by the balance sheet date.