Abbreviated Company Accounts - PORTLAND LABORATORY SERVICES 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 the invoiced services of manufacturing dentures.

Tangible assets depreciation policy
Depreciation is provided at the following annuala rates in order to write off each asset over its estimated useful life.

Plant and machinery - 25% on reducing balance
Fixtures and fittings - 15% on reducing balance

Other accounting policies
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Deferred tax
Provision is made for deferred taxation using the liability method for corporation tax deferred by accelerated capital allowances and by other timing differences. Deferred tax has been accounted for on the full provision basis in accordance with International Accounting Standards and Financial Reporting Standard 19.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Pension and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.