Abbreviated Company Accounts - SHELTON MACHINES 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
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.
Turnover derives from the provision of goods falling within the company's ordinary activities.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Leasehold Property - Straight line over the life of the lease
Plant & Machinery - 20% reducing balance
Motor Vehicles - 20% reducing balance
Equipment - 20% reducing balance

Intangible assets amortisation policy
Intellectual property is valued at cost.

Valuation information and policy
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Work In Progress
Work in progress is valued on the basis of the work completed less direct costs.

Other accounting policies
Hire Purchase Agreements
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.
Foreign Currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
Group Accounts
The company is entitled to the exemption under Section 398 of the Companies Act 2006 from the obligation to prepare group accounts.

4Fixed assets Investments
The company owns 75% of the issued ordinary share capital of Shelton Vision Systems, a company registered in England and Wales.