Abbreviated Company Accounts - WEB AGE LTD.

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts are prepared under the historical cost convention and comply with financial reporting standards of the Accounting Standards Board.

Turnover policy
The turnover shown in the profit and loss account represents amounts received r receivable for goods and services provided in the normal course of business, exclusive of Value Added Tax. Turnover is recognised based on stage of completion with final customer.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost.

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 - 4% straight line
Fixtures, fittings
and equipment - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Other accounting policies
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life od 20 years.

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 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.

Stock and work in progress
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Pensions
he pension costs charged in the financial statements represent the contribution payable by the company during the year.
The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings.

Taxation
Corporation Tax is calculated on results for the year.

Tax deferred as a result of timing differences between accounting and taxable profits is provided for in full in respect of deferred tax liabilities. Such provision or recognition is made at the taxation rates at which the differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised to the extent that they are regarded as recoverable.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transaction in foreign currencies are recorded at the date of the transactions. All differences are taken to the Profit and Loss account.