Abbreviated Company Accounts - GOODFELLOW ENVIRONMENTAL MAINTENANCE LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

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).

Turnover policy
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services to third parties in the normal course of business net of VAT and trade discounts. Revenue from goods and services is recognised when goods and services have been provided and the right to consideration has been earned.

Tangible assets depreciation policy
Tangible fixed assets other than freehold land 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:

Land and buildings - 2% straight line
Plant and machinery - 25% reducing balance/33% straight line
Fixtures, fittings & equipment - 10% reducing balance
Motor vehicles - 25% reducing balance

Other accounting policies
Goodwill
Goodwill represents the excess of cost of acquisition over the fair value of the separable net assets of businesses acquired. Acquired goodwill is amortised through the profit and loss account in equal annual instalments over its estimated useful economic life.

During the year to 31 August 2010, £150,000 was spent on goodwill and was amortised over three years. In the opinion of the director, this represented a prudent estimate of the period which the company derived direct economic benefit from the contracts.

Stock
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks.

Deferred Tax
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by the FRSSE.

Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.