Abbreviated Company Accounts - CHELMER PNEUMATICS & COMPRESSORS 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 chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Tangible assets depreciation policy
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Land and Buildings - 0% Depreciation
Motor Vehicles - 18% Reducing Balance
Fixtures, Fittings & Equipment - 18% Reducing balance
Computer Equpment - 100% straight line basis

Other accounting policies
Stock - is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Deferred tax - Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by the FRSSE.

HIre Purchase and leasing - Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Pensions - Defined contributions pension scheme - The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £8823.

Intercompay transactions - At the balance sheet date the Company owed £165,526 to Pneumatics Direct Limited.
During the year to 31st March 2016 the company purchased goods to the value of £61,907 from them, and sold goods to the value of £77,073 to them.