Abbreviated Company Accounts - P AND A EYECARE 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 comprises the invoiced value of goods and services supplied by the company, net of Value Added Tax and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less theory estimated residual value, over their expected useful lives, on the following basis:

Property Improvements 5% straight line
Plant & Machinery 20% reducing balance
Fixtures and Fittings. 20% straight line

Intangible assets amortisation policy
Goodwill is the difference between the amounts paid on acquisition of a business and the fair value of the separate nets assets. It is amortised to profit and loss account over its estimated economic life of 20 years.

Valuation information and policy
Stocks and work-in-progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Costs include all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.