Foreign currenciesTransactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or losses on translation are included in the profit and loss account.LeasesWhere the company enters into a leases which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible asset and is depreciated over its estimated useful life or the term of the leases, whichever is shorter. Future instalments under such leases, net of the finance charges are included in creditors. Rental payments are apportioned between finance element which is charged to the profit and loss account and the capital element which reduces the outstanding obligation for future instalments.All other leases are accounted for as operating leases and the rental charges are charged to the profit and loss account on a straight line over the life of the lease.StocksStock is valued at the lower of cost and net realisable value.Deferred taxationFull provision is made for deferred tax assets and liabilities arising from timing differences between the recognition of gains and losses in the accounts and their recognition of gains and losses in the accounts and their recognition for tax purposes.