Abbreviated Company Accounts - MADISON WIRE (EUROPE) 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
The turnover shown in the profit and loss account represents the value of all goods sold during the period, less returns received at selling price exclusive of VAT. Sales are recognised at the point at which the Company has fulfilled its contractual obligations and the risks and rewards attaching to the products have been transferred to the customer.

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset, net of anticipated disposal proceeds, over the useful economic life of the asset
Per annum
Freehold property 2% on straight line
Plant and machinery 10% on reducing balance
Fixtures and fittings 25% on reducing balance
Motor vehicles 25% on reducing balance

Intangible assets amortisation policy
No intangible assets

Valuation information and policy
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and low moving stock.

Cost is calculated using the first in, first out method and includes the normal cost of transporting stock to its present location and condition. Cost includes material and direct labour costs together with an appropriate proportion of production overheads.

Other accounting policies
Transactions denominated in foreign currencies are recorded at the rates of exchange ruling at the dates of the transactions, or at an average rate for the period if the rates do not fluctuate significantly. Monetary assets and liabilities are translated at year end exchange rates or, where appropriate, at rates of exchange fixed under the terms of the relevant transaction. The resulting exchange rate differences are charged to the profit and loss account.

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