Abbreviated Company Accounts - DISCUVA 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 revenue recognised by the company in respect of goods and services supplied during the period, exclusive of Value Added Tax and trade discounts.

Tangible assets depreciation policy
Depreciation is provided, after taking account of any grants receivable, at the following annual rates in order to write off each asset over its estimated useful life:

Laboratory Equipment - 20% of cost
Compound Libraries - 20% of cost
Office Equipment - 20% of cost

Other accounting policies
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Expenditure on research and development is written off in the year in which it is incurred except acquired compound libraries which are capitalised and written down over their estimated useful life.

Deferred taxation is provided only if it can be assessed with reasonable certainty that future taxable profits will arise to crystalise the tax benefit.

Grant Income - Grants of a revenue nature are credited to other income in the period in which the related expenditure is incurred.