Abbreviated Company Accounts - FONTENERGY CONSTRUCTION SERVICES LIMITED

1Accounting Policies

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

Turnover policy
The turnover shown in the profit and loss account represents the value of goods and services supplied during the period, exclusive of Value Added Tax.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Equipment - 33% straight line

Intangible assets amortisation policy
All Intangible assets are originally recorded at cost.
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Development Costs - 20% on cost

Other accounting policies
Going Concern - The company has net liabilities largely due to balances due to creditors, repaid after the year end.
The directors have confirmed that the company has adequate resources to continue trading for period of twelve months following the approval of these accounts. Accordingly the accounts have been prepared on a going concern basis.

Research and Development - Development expenditure is written off in the same year unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, expenditure is capitalised and amortised over the period from which the company is expected to benefit.

Deferred tax is recognised in respect of all material 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.

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 rates and laws enacted or substantively enacted at the balance sheet date.