Abbreviated Company Accounts - GRID TELECOM NETWORKS 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 January 2015.

Turnover policy
Turnover represents the total invoice value of sales made during the year and derives from the
provision of services falling within the company's ordinary activities.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost. Depreciation is provided at rates calculated to write off
the cost less residual value of each asset over its expected useful life, as follows:
Fixtures, fittings and equipment - 20% reducing balance
Computer equipment - 33.33% straight line

Other accounting policies
Pensions
The pension costs charged in the financial statements represent the contribution payable by the
company during the year.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.