Abbreviated Company Accounts - SILFORM TECHNOLOGIES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention and in accordance with applicable accounting standards with the exception of plant and machinery which is included at its revalued amount.

Tangible assets depreciation policy
Tangible fixed assets (except for plant and machinery) are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant and machinery - 10%
Freehold buildings - 0% to 5%
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
Plant and machinery is valued either on open market value or depreciated replacement cost.
Surpluses arising from professional or directors' valuations are taken direct to the revaluation reserve. Deficits are eliminated against any revaluation reserve with any excess, to the extent that it represents impairment, being charged to the profit and loss account. Surpluses or deficits realised on the disposal of an asset are transferred from the revaluation reserve to the profit and loss reserve.

Intangible assets amortisation policy
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life.
Expenditure on patents is capitalised as an intangible fixed asset and eliminated by amortisation through the profit and loss account over its useful economic life.

Other accounting policies
Going Concern
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for at least 12 months and do not include any adjustments that would result if the company was unable to continue on this basis. If the company was unable to continue in operational existence for at least 12 months from the date these financial statements were approved, adjustments may have to be made to adjust the balance sheet values of assets and long term liabilities as current assets and liabilities.
The company continues to develop its current contract with the US customer. Good progress is being made. The current shareholders have indicated a willingness to provide additional capital to the company in the future based upon the ongoing successful development of the palletisation machine.
Accordingly the directors continue to adopt the going concern basis in preparing the financial statements.