Abbreviated Company Accounts - SERVO ENGINEERING LTD

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 amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.
During the year 88.6% of the company's turnover related to foreign income.

Tangible assets depreciation policy
Included within Freehold Property is land which has not been depreciated, and has a value of £50,000.
Freehold property - 2% straight line
Computer equipment - 50% reducing balance
Equipment - 15% reducing balance
Motor vehicles - 25% reducing balance
Boat - 15% reducing balance

Other accounting policies
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by the FRSSE.

Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.