Exchange Productions Limited
Notes to the Financial Statements
For the Year Ended 31 March 2023
Exchange Productions Limited is a private company limited by share capital incorporated in England, registered number 02413667. The address of the registered office is Royal Exchange Theatre, St Ann's Square, Manchester, M2 7DH.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
After making appropriate enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Although at 31 March 2023 the company’s liabilities exceeded its assets by £2,193 (2022: £2,193) the directors consider that it is appropriate to prepare the financial statements on a going concern basis, as the company has received a commitment of support from its parent undertaking, Royal Exchange Theatre Company Limited.
Revenue represents commissioning fees charged to the parent company Royal Exchange Theatre Company Limited, for opening, running and closing theatrical productions. This income is recognised on a receivable basis.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Short term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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