Abbreviated Company Accounts - IT-IS INTERNATIONAL 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 value, excluding value added tax, of sales made during the year.

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:
Land and buildings - Not depreciated
Plant and machinery - 25% straight line
Fixtures, fittings
and equipment - 25% straight line
Motor vehicles - 25% straight line

Other accounting policies
1.3. 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.

1.5. Leasing and hire purchase commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and
depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.
1.6. Stock
Stock is valued at the lower of cost and net realisable value.
1.7. Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates
of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Profit and Loss account.