Abbreviated Company Accounts - WESTERN BUSINESS SYSTEMS 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 January 2015).

Turnover policy
Turnover represents sales made and work done in the year stated net of VAT.

In respect of long term contracts and contracts for ongoing services, turnover represents the value of work done in the year including estimates of amounts not invoiced. Turnover is such circumstances is recognised by reference to the stage of completion at the selling price.

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset less its residual value over the estimated useful economic life as follows:

Short leasehold property over the term of the lease
Furniture and fittings 25% on net book value
Motor vehicles one-third on net book value
Office equipment one-third on cost

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

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exception.

Deferred tax assets are only recognised to the extent that the directors consider it more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse based on tax laws enacted or substantively enacted at the balance sheet date.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability are charged as interest expense in the profit and loss account.