Abbreviated Company Accounts - HUDSON-SWAN ENGINEERING LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain fixed assets, and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

The financial statements have been prepared on the going concern basis on the understanding that the directors and the bank will continue to support the business.

Turnover policy
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset over the useful economic life of that asset as follows:

Property Improvements - 15% straight line
Plant & Machinery - 10% reducing balance
Fixtures & Fittings - 10% reducing balance
Motor Vehicles - 25% reducing balance

Intangible assets amortisation policy
Amortisation is calculated so as to write off the cost of an asset over the useful economic life of that asset as follows:

Goodwill - 20 years straight line

Valuation information and policy
Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Hire purchase agreements

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.