Abbreviated Company Accounts - GRANVILLE CONSTRUCTION COMPANY 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
Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods 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:
Plant and machinery – 25% reducing balance
The directors are of the opinion that the high residual value of the Freehold property, together with its lengthy useful economic life, means that depreciation of this property is not material and, accordingly, depreciation is not provided.

Other accounting policies
Stock
Stock is valued at the lower of cost and net realisable value.

Deferred taxation:
Provision is made for deferred taxation using the liability method to take account of timing differences between the incidence of income and expenditure for taxation and accounting purposes except to the extent that the director consider that a liability to taxation is unlikely to materialise. Deferred taxation is measured on a non-discounted basis at the tax rates expected to apply in the periods in which the timing differences reverse, based on tax rates and the law enacted or substantively enacted at the balance sheet date.