Abbreviated Company Accounts - PENNINGTONS PACKAGING 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 amounts receivable for packaging and paper products, net of VAT.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Fixtures, fittings & equipment 15% on reducing balance
Motor vehicles 25% on reducing balance

Other accounting policies
Compliance with accounting standards: The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

Goodwill: Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.

Stock: Stock is valued at the lower of cost and net realisable value.

Deferred taxation: Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.