Abbreviated Company Accounts - GEOTEK HEATING LTD

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 value of sales and services rendered, excluding Value Added Tax, in respect of the activities detailed in the Director's Report, all of which are continuing.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less accumulated depreciation.
Depreciation is provided by the company to write off the cost, less the estimated residual value, of it's tangible fixed assets over their useful economic lives:-
Fixtures & fittings - 25%pa (Reducing balance basis)
Computer equipment - 25%pa (Reducing balance basis)
Plant & machinery - 25%pa (Reducing balance basis)
Motor vehicles - 25%pa (Reducing balance basis)

Valuation information and policy
Stocks & work in progress are valued at at the lower of cost or net realisable value.

Other accounting policies
Assets obtained under hire purchase contracts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.