Abbreviated Company Accounts - PIPEFLEX MANUFACTURING 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.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Other tangible assets - 25% reducing balance

Other accounting policies
Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Profit and Loss account.

Going concern
These financial statements have been prepared on a going concern basis, the validity of which depends on the continued support of the holding company Pipeflex Holding AS. The accounts do not include any adjustments that may be necessary should that support be discontinued.

Prior year adjustments
The prior year adjustment is in respect of transactions with Pipeflex Holding AS and consisted of interest charged £362,384, loan write off £535,829, additional rent expense £118,265 and a loss on exchange £169,922. The effect of which was to increase the loss for the year by £114,741.

5Transactions with directors