Abbreviated Company Accounts - SPW TRAFFIC CONTROL 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 April 2008.

Turnover policy
The turnover shown in the profit and loss account represents revenue earned during the period, exclusive of VAT.
Long term and on-going contracts: turnover represents the value of work done including estimates of amounts not yet invoiced and is recognised by reference to the stage of completion.

Tangible assets depreciation policy
Depreciation is provided, after taking account of any grants receivable, at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings: 33% straight line
Office equipment: 33% straight line
Motor vehicles: 20% reducing balance
Plant and machinery: 15% reducing balance

Intangible assets amortisation policy
Intangible fixed assets (including purchased goodwill and patents) are amortised at rates to write off the assets on a straight line basis over their estimated useful economic lives, not to exceed twenty years. Impairment of intangible assets is only received where circumstances indicate the carrying value of an asset may not be fully recoverable.

Other accounting policies
Stock and work-in-progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Expenditure on research and development is written off in the year in which it is incurred.

6Transactions with directors

The director has secured funds introduced since 10th August 2009 by a debenture.