Abbreviated Company Accounts - EDISON ELECTRICAL INSTALLATIONS LTD

1Accounting Policies

Turnover policy
Turnover represents net invoiced sales of goods and services, excluding value added tax.

Tangible assets depreciation policy
Depreciation of tangible fixed assets
Depreciation is provided on all tangible fixed assets at rates calculated to write off the full cost or
valuation less estimated residual value of each asset over its estimated useful life. The principal
rates in use are:
Motor vehicles 20% reducing balance
Equipment, fixtures and fittings 20% reducing balance

Other accounting policies
Deferred taxation
Deferred tax is provided in respect of the tax effect of all timing differences that have originated but
not reversed at the balance sheet date.
A deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of
all available evidence, it can be regarded as more likely than not that there will be suitable taxable
profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on a non discounted basis, at the average tax rates that are expected to
apply in the periods in which the timing differences are expected to reverse, based on tax rates and
laws that have been enacted or substantively enacted by the balance sheet date.