Abbreviated Company Accounts - TRADEWOODS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared in accordance with the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy
Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

Tangible assets depreciation policy
Depreciation is calculated to write off the cost or valuation of assets over their useful lives. The methods adopted and rates used are:

Improvements to property - 50% straight line basis
Plant and machinery - 50% straight line basis
Fixtures and fittings - 50% straight line basis
Computer equipment - 50% straight line basis

Other accounting policies
STOCKS
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

HIRE PURCHASE AND LEASING COMMITMENTS
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives of the lease term, whichever is shorter.

The interest element of these obligations is charges to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

PENSION COSTS AND OTHER POST-RETIRMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.