Company Registration No. 02402805 (England and Wales)
THE VIDEO STANDARDS COUNCIL
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
THE VIDEO STANDARDS COUNCIL
COMPANY INFORMATION
Directors
J A Lake
I D Muspratt
The UK Interactive Entertainment Association Limited
Entertainment Retailers Association
British Association for Screen Entertainment Limited
C M Atkinson
M MacLeod
H Marsh
F T E Langford
E L Ham-Riche
(Appointed 1 January 2020)
Secretary
B Moffat
Company number
02402805
Registered office
Suite 4A Salar House
61 Campfield Road
St Albans
Hertfordshire
AL1 5HT
Auditor
Newton & Garner Limited
Building 2
30 Friern Park
North Finchley
London
N12 9DA
THE VIDEO STANDARDS COUNCIL
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 5
Income and expenditure account
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 15
THE VIDEO STANDARDS COUNCIL
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2020.
Principal activities
The principal activity of the company during the year was the administration of statutory and non statutory rating systems. The company is responsible for administering the statutory rating system for video games within the United Kingdom under the terms of the Video Recordings Act 1984. It is also an administrator of the Pan European Game Information (‘PEGI’) system, which is used in around 40 countries in Europe, both within and outside the EU, and adopted on either a statutory or voluntary basis according to country. The company is also involved in the voluntary rating of online games and apps in its role as a member of the International Age Rating Coalition (‘IARC’), which applies on a voluntary basis in many countries around the world, including in the UK and in those European countries using the PEGI system.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J A Lake
I D Muspratt
The UK Interactive Entertainment Association Limited
Entertainment Retailers Association
British Association for Screen Entertainment Limited
C M Atkinson
M MacLeod
H Marsh
F T E Langford
E L Ham-Riche
(Appointed 1 January 2020)
Auditor
A resolution in accordance with Section 385, Companies Act 1985, for the re-appointment of Newton & Garner
Limited
as auditors of the company is to be proposed at the forthcoming annual general meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
By order of the board
B Moffat
Secretary
20 April 2021
THE VIDEO STANDARDS COUNCIL
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THE VIDEO STANDARDS COUNCIL
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE VIDEO STANDARDS COUNCIL
- 3 -
Opinion
We have audited the financial statements of THE VIDEO STANDARDS COUNCIL (the 'company') for the year ended 31 December 2020 which comprise the income and expenditure account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its surplus for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
THE VIDEO STANDARDS COUNCIL
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE VIDEO STANDARDS COUNCIL
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
THE VIDEO STANDARDS COUNCIL
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE VIDEO STANDARDS COUNCIL
- 5 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Robert Knight, FCCA, ATII (Senior Statutory Auditor)
for and on behalf of Newton & Garner Limited
7 May 2021
Chartered Accountants
Statutory Auditor
Building 2
30 Friern Park
North Finchley
London
N12 9DA
THE VIDEO STANDARDS COUNCIL
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 6 -
2020
2019
£
£
Income
681,137
669,449
Administrative expenses
(652,920)
(626,512)
Operating surplus
28,217
42,937
Interest receivable and similar income
545
1,146
Surplus before taxation
28,762
44,083
Tax on surplus
(5,507)
(8,803)
Surplus for the financial year
23,255
35,280
THE VIDEO STANDARDS COUNCIL
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 7 -
2020
2019
Notes
£
£
£
£
Fixed assets
Investments
4
2
2
Current assets
Debtors
5
29,258
29,218
Cash at bank and in hand
458,180
445,437
487,438
474,655
Creditors: amounts falling due within one year
6
(23,136)
(33,608)
Net current assets
464,302
441,047
Total assets less current liabilities
464,304
441,049
Reserves
Income and expenditure account
464,304
441,049
Members' funds
464,304
441,049
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 20 April 2021 and are signed on its behalf by:
J A Lake
I D Muspratt
Director
Director
Company Registration No. 02402805
THE VIDEO STANDARDS COUNCIL
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
Income and expenditure
£
Balance at 1 January 2019
405,769
Year ended 31 December 2019:
Profit and total comprehensive income for the year
35,280
Balance at 31 December 2019
441,049
Year ended 31 December 2020:
Profit and total comprehensive income for the year
23,255
Balance at 31 December 2020
464,304
THE VIDEO STANDARDS COUNCIL
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 9 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
10
25,476
59,120
Income taxes paid
(8,803)
(3,895)
Net cash inflow from operating activities
16,673
55,225
Investing activities
Purchase of tangible fixed assets
(4,475)
(6,362)
Interest received
545
1,146
Net cash used in investing activities
(3,930)
(5,216)
Net increase in cash and cash equivalents
12,743
50,009
Cash and cash equivalents at beginning of year
445,437
395,428
Cash and cash equivalents at end of year
458,180
445,437
THE VIDEO STANDARDS COUNCIL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 10 -
1
Accounting policies
Company information
THE VIDEO STANDARDS COUNCIL is a
private
company
limited by guarantee
incorporated in England and Wales.
The registered office is
Suite 4A Salar House, 61 Campfield Road, St Albans, Hertfordshire, AL1 5HT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Income and expenditure
Income and expenses are included in the financial statements as they become receivable or due.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is provided to write off the cost of tangible fixed assets
in full, when acquired.
Fixtures, fittings & equipment
100%
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to surplus or deficit
.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in surplus or deficit.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
THE VIDEO STANDARDS COUNCIL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 11 -
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.5
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
THE VIDEO STANDARDS COUNCIL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 12 -
1.7
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in surplus or deficit immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in surplus or deficit depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.8
Taxation
The tax currently payable is based on taxable
surplus
for the year. Taxable
surplus
differs from net
surplus
as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 16 (2019 - 15).
2020
2019
Number
Number
Total
16
15
THE VIDEO STANDARDS COUNCIL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 13 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2020
98,176
Additions
4,475
At 31 December 2020
102,651
Depreciation and impairment
At 1 January 2020
98,176
Depreciation charged in the year
4,475
At 31 December 2020
102,651
Carrying amount
At 31 December 2020
-
At 31 December 2019
-
4
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
2
2
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2020 & 31 December 2020
2
Carrying amount
At 31 December 2020
2
At 31 December 2019
2
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Other debtors
29,258
29,218
THE VIDEO STANDARDS COUNCIL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 14 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Corporation tax
5,507
8,803
Other taxation and social security
13,640
13,425
Other creditors
3,989
11,380
23,136
33,608
7
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £10.
8
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
134,190
11,715
9
Related party transactions
During the year the company paid £17,615 (2019 - £17,780) to IDM & Co, Chartered Accountants in respect of his services provided by I D Muspratt as a director of the company.
10
Cash generated from operations
2020
2019
£
£
Surplus for the year after tax
23,255
35,280
Adjustments for:
Taxation charged
5,507
8,803
Investment income
(545)
(1,146)
Depreciation and impairment of tangible fixed assets
4,475
6,362
Movements in working capital:
(Increase)/decrease in debtors
(40)
1,359
Increase in creditors
215
2,686
(Decrease)/increase in deferred income
(7,391)
5,776
Cash generated from operations
25,476
59,120
THE VIDEO STANDARDS COUNCIL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 15 -
11
Analysis of changes in net funds
1 January 2020
Cash flows
31 December 2020
£
£
£
Cash at bank and in hand
445,437
12,743
458,180
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I D Muspratt
The UK Interactive Entertainment Association Limited
The UK Interactive Entertainment Association Limited
Entertainment Retailers Association
British Association for Screen Entertainment Limited
C M Atkinson
M MacLeod
H Marsh
E L Ham-Riche
B Moffat
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