Abbreviated Company Accounts - THE ORIGINAL BOOK WORKS 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 manufactured resin products sold to customers during the year, net of value added tax and trade discounts.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 10% on cost
Plant & machinery - 10% on cost
Fixtures & fittings - 10% & 20% on cost

Cost is defined as purchase cost less any residual value.
Depreciation is charged from the month of acquisition at the above rates.
The net book values of the assets are regularly reviewed by the directors and further adjustments to carrying values are made where considered appropriate.

Other accounting policies
Stocks
Stock is valued at the lower of cost and net realisable value. Cost represents direct materials and labour and production overheads.
Deferred Tax
Deferred taxation is recognised in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen by not reversed by the balance sheet date. Full provision is made without discounting for all deferred tax liabilities. Deferred tax assets are recognised to the extent that it is more likely than not that they will be recovered against taxable profits.
Foreign Currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling the rate of exchange ruling at the date of the transactions. Exchange differences are taken into account in arriving at the operating result.
Pension costs
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged tot he profit and loss account in the period to which they relate.