Abbreviated Company Accounts - F. CHADWICK JOINERY LIMITED

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 amount invoiced, excluding VAT, for work done and materials supplied.

Tangible assets depreciation policy
Depreciation is provided on all tangible fixed assets at rates calculated to write off all their costs, less estimated residual values, over their expected useful lives. The rate applied is 25% per annum on the reducing balance for all fixed assets

Valuation information and policy
Stocks:
Stocks and work-in-progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate proportion fixed and variable overheads.

Other accounting policies
Deferred taxation:
Deferred tax arises as a result of including items of expenditure in taxation computations in periods different from those in which they are included in the accounts. Deferred tax is provided on timing differences which result in the obligation to pay more (or the right to pay less) tax at a future date, at the rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.
Deferred tax is not provided on timing differences arising from the revaluation of fixed assets where there is no commitment to sell the asset.
Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets are not discounted.