Abbreviated Company Accounts - PACC ENGINEERING LIMITED

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
Turnover show in the Profit and loss account represent amounts received or receivable for goods and services provided in the normal course of business, exclusive of VAT. Turnover is recognised upon sage completion of each contract.

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

Depreciation is provided at rates calculated to write off the cost le residual value of each asset over its expected useful life, as follows:

Plant and machinery - 15% Reducing Balance
Fixtures, fittings
and equipment - 15% Reducing Balance
Motor vehicles - 25% Reducing Balance

Other accounting policies
Stock
Stock is valued at the lower of cost and net realisable value. Cost in respect of finished goods represents direct materials and other direct costs. Net realisable value is the price at which the stock can be realised in the normal course of business. Provision is made where necessary for obsolete, slow moving and defective stock.

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 the work in progress.

Pensions
The pension costs charged in the financial statements represent the contribution payable by the company during the year.

Taxation
Corporation tax is calculated in the results for the year.

Tax deferred as a result of timing difference between accounting and taxable profits if provided for in full in resect of deferred tax liabilities. Such provision is made at the taxation rates at which the differences are expected to reverse, based on bands and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised to the extent 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. Transactions in foreign currencies are recorded at the date of the transaction. All differences are taken to the Profit and Loss account.

Ultimate parent undertaking
PACC Engineering Limited is a wholly owned subsidiary of P.Casey Engineering Limited, a company registered in Northern Ireland. P.Casey Engineering Limited has its registered office at 4B Tulnacross Road, Cookstown, Co.Tyrone, BT80 9NH.