Abbreviated Company Accounts - AURORA ELECTRONICS (UK) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.

Turnover policy
Turnover represents the invoiced value of goods provided net of value added tax.

Tangible assets depreciation policy
Depreciation on fixed assets is provided at rates estimated to write off the cost or revalued amounts, less estimated residual value of each asset over its expected useful life as follows:

Plant and Machinery: 25% straight line p.a.
Office equipment: 25% straight line p.a.
Fixtures and fittings: 25% straight line p.a.

Other accounting policies
Where debts are assigned to a factor and significant benefits and risks relating to the debt are retained and where there is an obligation to repay amounts received from the factor, the debts are recognised as assets and a liability is recognised in respect of the proceeds received from the factor.

Stocks are stated at the lower of cost and net realisable value. Cost includes all direct costs incurred in bringing the stocks to their present location and condition.

Deferred taxation, on losses, accelerated capital allowances and other timing differences, is calculated on the liability method, and is provided to the extent that an asset is expected to become recoverable or a liability is expected to become payable in the foreseeable future.

4Transactions with directors