Abbreviated Company Accounts - A. & P. BUILDERS LIMITED

1Accounting Policies

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

Turnover policy
Turnover represents the amount derived from the provision of goods and services falling within the company’s activities after deduction of trade discounts and VAT.

Tangible assets depreciation policy
Depreciation of fixed assets is calculated to write off their cost or valuation less any residual value over their estimated useful lives as follows: Office equipment 3 years, motor vehicles 25% on reducing balance, plant and equipment 4 years.

Other accounting policies
Tangible fixed assets acquired under hire purchase contracts are capitalised at the date of commencement of the contract. The total finance charges are written off to profit and loss account on a straight-line basis. Rentals paid under operating leases are charged to profit and loss account on a straight-line basis over the period of the lease. Deferred taxation is provided in respect of all timing differences that have originated but not reversed by the balance sheet date. Timing differences for deferred taxation calculations arise when taxable profits are different to those shown in the financial statements due to the inclusion of gains and losses in the tax assessments in different periods to those in which they are recognised in the financial statements.