Abbreviated Company Accounts - MARTIN SPENCER & CO 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 comprises the invoiced value of goods and services supplied by the company,net of Value Added and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation.Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life,as follows:
Plant and machinery 20% reducing value
Motor vehicles 25% reducing value

Other accounting policies
Stocks
Stocks and work in progress are valued at the lower of cost and net reasisable value after making due allowance for obsolete and slow moving stocks.Cost includes all direct costs and appropriate proportion of overheads.

Deferred taxation
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that originated but not reversed at the balance sheet date. However, 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 taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and law enacted or substantively enacted at the balance sheet date