Abbreviated Company Accounts - ORRION 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 – 15% reducing balance
Computer equipment – 3 years straight line
Motor vehicles – 25% reducing balance

Other accounting policies
Going concern

At the balance sheet date there was a deficiency of assets. At the tie that the dividends were paid it was believed that the company had sufficient profits and the director will work to rectify this in the next financial year. Although the balance sheet is negative, the director will support the company over the next 12 months if required, and therefore the accounts have been prepared on a going concern basis. The director understands that the dividends would have to be repaid if the company went into liquidation and there were insufficient funds to pay the debts.