Abbreviated Company Accounts - PREFERRED MANAGEMENT SOLUTIONS (PMS) LTD

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts 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 the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods and services falling within the company's ordinary activities.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Other tangible assets - 25% straight line
Plant and machinery - 25% straight line
Fixtures, fittings
and equipment - 25% straight line

Valuation information and policy
Stock
Stock is valued at the lower of cost and net realisable value.

Other accounting policies
Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Research and development
Research expenditure is written off to the profit and loss account in the year in which it is incurred.
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, the expenditure is deferred and amortised over the period from which the company is expected to benefit.