1. Accounting policies

Basis of measurement and preparation of accounts

The financial statements 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 comprises of revenue recognized by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discount.

Tangible fixed assets depreciation policy

Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freehold land. Depreciation on the other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following basis: Freehold Land and buildings - 1% straight line, Plant and Machinery - 20% reducing balance, Motor vehicles - 25% reducing balance, Fixtures and Fittings - 25% reducing balance.

Intangible fixed assets amortisation policy

Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight basis over their estimated useful economic lives, no t to exceed twenty years. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

Other accounting policies

LEASING AND HIRE PURCHASE Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. STOCK AND WORKIN PROGRESS: 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 of fixed and variable overheads. DEFERRED TAX: Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. Deferred taxation is calculated at the rates of tax that are expected to apply in the periods when the timing differences will reverse and has not been discounted.

3. Intangible assets

During the year MP Printers Ltd purchased the assets and liabilities from Elan Printing Ltd. The goodwill recorded above represents the amount paid less the value of net assets and expenses.

4. Tangible assets

5. Debtors

6. Creditors: amounts falling due within one year

7. Creditors: amounts falling due after more than one year

8. Called up share capital

Allotted, called up and paid