Abbreviated Company Accounts - OCTA (U.K.) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015) .

Turnover policy
Turnover comprises the invoiced value of goods and services provided by the company, net of Value Added Tax and trade discounts.
The company operates in the U.K. abd the whole of the turnover is to the U.K. market.

Tangible assets depreciation policy
Depreciation is calculated to write off the cost less estimated residual value of fixed assets over their estimated useful lives.
Depreciation is provided by a percentage of the written down values, calculated for the period of ownership, at the following rates :
Fixtures, fittings and equipment - 20%

Intangible assets amortisation policy
Acquired goodwill is stated at cost less amortisation. Amortisation is calculated on a straight line basis over the estimated expected useful economic life of the goodwill of 20 years.

Other accounting policies
Operating lease rentals
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
Deferred taxation
Deferred taxation arises when items are charged or credited in accounts in different periods to those in which they are included in the company's tax computations.
Deferred tax is provided in full on timing differences that result in an obligation to pay more (or less)
tax at a future date.Deferred tax is calculated at the average rates that are expected to apply when the timing differences reverse, based on current tax rates and law. The resulting deferred tax asset or liability is not discounted.
Dividends
Proposed dividends are only included as liabilities in the financial statements when their payment has been approved by the shareholders prior to the balance sheet date.
Stocks
Stocks 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 costs and an appropriate proportion of fixed and variable overheads.

Due to the company's extensive and loyal customer base the directors consider that useful economic life of goodwill remains unchanged from their original estimation.