Abbreviated Company Accounts - PROCESS AND PLANT SALES LIMITED

1Accounting Policies

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

Turnover policy
Turnover represents amounts receivable for goods and 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:

Fixtures, fittings and equipment - 15% p.a. reducing balance
Motor vehicles - 25% p.a. reducing balance

Other accounting policies
Leasing and hire purchase commitments:
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Stock:
Stock is valued at the lower of cost and net realisable value.

Pensions:
The company operates 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.

Foreign currency translation:
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

Loans to directors:
Included in other debtors is a balance of £21,659 (2015: £23,857) due from Mr P D Jones, one of the directors. The maximum balance outstanding during the year was £23,885 (2015: £25,962). Repayment is being made by instalments, inclusive of interest.