Abbreviated Company Accounts - CROSSLEY & CRAVEN (HALIFAX) 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 amounts receivable for goods net of VAT and trade discounts

Tangible assets depreciation policy
Tangible fixed assets other than freehold land are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows
Land and buildings freehold 1% Straight line
Plant and machinery 25% Reducing balance
Motor vehicles 25% Reducing balance
The part of the annual depreciation charge on revalued assets which elates to the revaluation surplus is transferred from the reserve to the profit and loss account.

Other accounting policies
Assets held under finance lease, Which are leases where substantially all the risk and reward of ownership have passed to the company, are capitalised in the balance sheet and are depreciated over their useful lives. the capital elements of the future obligations under the leases are included in the balance sheet. the interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of the capital repayments outstanding.
Assets acquired under instalment finance agreements are treated as fixed assets and depreciation is provided accordingly. The capital element of future finance payments is included within creditors. the finance charges are allocated to the accounting periods over the length of the contract.
Rentals payable under operating leases are charged to the profit and loss account as incurred.

Stock is valued at the lower of cost and net realisable value. Net realisable value is based on selling price less anticipated cost to completion and selling costs.

The company operates a defined contribution pension scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year are payable in accordance with the rules of the scheme.