Abbreviated Company Accounts - AWG WINDSCREENS & GLAZING 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 value of services provided to the extent that there is a right to consideration and is recorded at the value of the consideration due.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Plant and machinery - 15% Reducing balance
Fixtures, fittings
and equipment - 25% Straight line
Motor vehicles - 25% Reducing balance

Intangible assets amortisation policy
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of
10 years.

Patents
Patents are valued at cost less accumulated amortisation.
Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful
life of 20 years.

Other accounting policies
Leasing and hire purchase commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Included above are assets held under finance leases or hire purchase contracts as follows:

Motor vehicles
Net book value £11,718 (2014 £15,624)
Depreciation charged in the year £12,603 (2014 £8,696)