Abbreviated Company Accounts - LEG-GATS 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
Tangible fixed assets and depreciation
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 - Straight line over 100 years.
Motor vehicles - 25% straight line

Other accounting policies
Stock
Stock is valued at the lower of cost and net realisable value.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed
at the balance sheet date where transactions or events have occurred at that date that will result in
an obligation to pay more, or a right to pay less or to receive more, tax, with the following
exceptions:
Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of
fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement
assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of
the assets concerned. However, no provision is made where, on the basis of all available evidence at
the balance sheet date, it is more likely than not that the taxable gain will be rolled over into
replacement assets and charged to tax only where the replacement assets are sold;
Provision is made for deferred tax that would arise on remittance of the retained earnings of
overseas subsidiaries, associates and joint ventures only to the extent that, at the balance sheet
date, dividends have been accrued as receivable;
Deferred tax assets are recognised only to the extent that the directors consider that it is more
likely than not that there will be suitable taxable profits from which the future reversal of the
underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the
periods in which timing differences reverse, based on tax rates and laws enacted or substantively
enacted at the balance sheet date.