Abbreviated Company Accounts - HEAT TRACE (UK) LTD

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.

The accounts are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

The financial statements are prepared in accordance with the applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

Turnover policy
Turnover represents amounts receivable for the provision of trace heating services net of VAT and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Computer equipment - 33% reducing balance
Fixtures, fittings & equipment - 20% or 25% reducing balance
Motor vehicles - 25% reducing balance

Valuation information and policy
Stock
Stock is valued at the lower of historic cost and net realisable value, being the expected future sales price.

Other accounting policies
Going Concern
At the balance sheet date the company had net liabilities of £406,698. With the support of the directors, the company's bankers and a major supplier, the company continues to meets its liabilities as they fall due. As such, the directors continue to adopt the going concern basis of accounting.

Leasing and hire purchase commitments
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Pensions
The company operated a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.