Abbreviated Company Accounts - IDEM SAFETY SWITCHES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention modified to include the revaluation of freehold land and buildings.

Turnover policy
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets other than land and buildings are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery 25% reducing balance
Fixtures, fittings and equipment 25% reducing balance
Motor vehicles 25% reducing balance

Intangible assets amortisation policy
Patents are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in annual instalments over their estimated useful life.

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 way 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 during which the company is expected to benefit.