Abbreviated Company Accounts - S.G. TRANSMISSIONS 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 the value of goods and services supplied by the company, net of value added tax - all of which arise in the United Kingdom.

Tangible assets depreciation policy
Tangible fixed assets are states at cost or valuation less depreciation and provisions for impairment.
Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value of each asset over its expected life, as follows: Plant and Machinery - 15% straight line basis, Fixtures and fittings - 15% straight line basis, Motor vehicles - 25% straight line basis.

Intangible 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, not 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.