Abbreviated Company Accounts - OCTA (U.K.) 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 provided by the company, net of Value Added Tax and trade discounts.

Tangible assets depreciation policy
Depreciation is calculated to write off the cost less estimated residual value of fixed assets over their estimated useful lives.
Depreciation is provided by a percentage of the written down values, calculated for the period of ownership, at the following rates :
Fixtures, fittings and equipment - 20%

Intangible assets amortisation policy
Goodwill represents the excess of cost of acquisition over the fair value of the separable assets acquired.
Goodwill is amortised through the profit and loss account in equal instalments over its useful life.

Other accounting policies
Deferred taxation
Deferred tax is recognised in respect of timing differences that have originated but not reversed at the balance sheet date.
Dividends
Proposed dividends are only included in the financial statements when their payment has been approved by the shareholders prior to the balance sheet date.
Stocks
Stocks comprise materials and consumables used in the trade and are valued at the lower of cost and net realisable value, the method of valuation being the actual unit cost.