Company Registration No. 10116815 (England and Wales)
Carbonado Industries (UK) Limited
Annual report and financial statements
for the year ended 31 December 2021
Carbonado Industries (UK) Limited
Company information
Directors
Russell Haywood
Rhonda Hjort
Chakira Gavazzi
(Appointed 22 June 2021)
Tracy Bermingham
(Appointed 22 June 2021)
Nicholas Rush
(Appointed 22 June 2021)
Company number
10116815
Registered office
3 Queen Caroline Street
Hammersmith
London
W6 9PE
Independent auditor
Saffery Champness LLP
71 Queen Victoria Street
London
EC4V 4BE
Carbonado Industries (UK) Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
Carbonado Industries (UK) Limited
Strategic report
For the year ended 31 December 2021
Page 1
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
During the year the company was involved in the production of a film. The company incurred a loss before tax of £2,151,522 (year ending 31 December 2020: £6,096,628) and at the year end had net assets of £61,004 (31 December 2020: £50,099).
The directors have reviewed the risks and resultant uncertainties facing the company as being the ability to secure future contracts. However the ultimate parent company has provided sufficient assurance that it will support the company and provide the necessary finances for its future operations.
The directors consider the company's key financial performance indicator to be whether the film is completed in line with the production budget. At the year-end, the final cost was forecasted to be below the production budget.
The directors consider the company's key non-financial performance indicator to be whether the film is certified as British. As of the date of signature, the company has received the British Film Certificate.
Tracy Bermingham
Director
22 December 2022
Carbonado Industries (UK) Limited
Directors' report
For the year ended 31 December 2021
Page 2
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of motion picture production.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ilene Aultman
(Resigned 22 June 2021)
Russell Haywood
Rhonda Hjort
Chakira Gavazzi
(Appointed 22 June 2021)
Tracy Bermingham
(Appointed 22 June 2021)
Nicholas Rush
(Appointed 22 June 2021)
Future developments
The directors expect to continue the principal activity for the foreseeable future given the continued financial support received from its financiers, LFL Productions LLC, a wholly owned subsidiary of the ultimate parent company, The Walt Disney Company.
Auditor
The auditor, Saffery Champness LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Carbonado Industries (UK) Limited
Directors' report (continued)
For the year ended 31 December 2021
Page 3
On behalf of the board
Tracy Bermingham
Director
22 December 2022
Carbonado Industries (UK) Limited
Directors' responsibilities statement
For the year ended 31 December 2021
Page 4
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 profit or loss 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.
Carbonado Industries (UK) Limited
Independent auditor's report
To the member of Carbonado Industries (UK) Limited
Page 5
Opinion
We have audited the financial statements of Carbonado Industries (UK) Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting
S
tandard 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 2021 and of its profit 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Carbonado Industries (UK) Limited
Independent auditor's report (continued)
To the member of Carbonado Industries (UK) Limited
Page 6
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.
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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
the
audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 strategic report and 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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
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.
Carbonado Industries (UK) Limited
Independent auditor's report (continued)
To the member of Carbonado Industries (UK) Limited
Page 7
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
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance. We have reviewed management’s assessment of how the company, and production, comply with the relevant laws and regulations governing access to the creative industry tax credits.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud
.
Carbonado Industries (UK) Limited
Independent auditor's report (continued)
To the member of Carbonado Industries (UK) Limited
Page 8
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member for our audit work, for this report, or for the opinions we have formed.
Nigel Walde (Senior Statutory Auditor)
For and on behalf of Saffery Champness LLP
11 January 2023
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Carbonado Industries (UK) Limited
Statement of comprehensive income
For the year ended 31 December 2021
Page 9
Year ended
Year ended
31 December
31 December
2021
2020
as restated
Notes
£
£
Turnover
3
9,124,492
30,090,641
Cost of sales
(11,261,014)
(36,194,555)
Gross loss
(2,136,522)
(6,103,914)
Administrative expenses
(15,000)
(20,000)
Other operating income
27,286
Loss before taxation
(2,151,522)
(6,096,628)
Tax on loss
7
2,162,427
6,108,313
Profit for the financial year
10,905
11,685
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Carbonado Industries (UK) Limited
Balance sheet
As at 31 December 2021
Page 10
31 December
31 December
2021
2020
as restated
Notes
£
£
£
£
Current assets
Debtors
8
5,263,189
9,810,158
Cash at bank and in hand
6,437,742
230,784
11,700,931
10,040,942
Creditors: amounts falling due within one year
9
(11,639,927)
(9,990,843)
Net current assets
61,004
50,099
Capital and reserves
Called up share capital
10
1
1
Profit and loss reserves
61,003
50,098
Total equity
61,004
50,099
The financial statements were approved by the board of directors and authorised for issue on 22 December 2022 and are signed on its behalf by:
Tracy Bermingham
Director
Company Registration No. 10116815
Carbonado Industries (UK) Limited
Statement of changes in equity
For the year ended 31 December 2021
Page 11
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2020:
Balance at 1 January 2020
1
38,413
38,414
Period ended 31 December 2020:
Profit and total comprehensive income for the period
-
11,685
11,685
Balance at 31 December 2020
1
50,098
50,099
Period ended 31 December 2021:
Profit and total comprehensive income for the period
-
10,905
10,905
Balance at 31 December 2021
1
61,003
61,004
Carbonado Industries (UK) Limited
Notes to the financial statements
For the year ended 31 December 2021
Page 12
1
Accounting policies
Company information
Carbonado Industries (UK) Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
3 Queen Caroline Street, Hammersmith, London, W6 9PE.
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Interest
income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
The Walt Disney Company
. These consolidated financial statements are available from its registered office,
500 Buena Vista Street, Burbank, California, 91521, USA.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 13
1.3
Turnover
In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the period, including estimates of amounts not invoiced. Value of work done in respect of long-term contracts for on-going services is determined by reference to the stage of completion.
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the period in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.4
Cash at bank and in hand
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.
1.5
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, 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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 14
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
Taxation
The tax expense represents the sum of the tax currently
recoverable
and deferred tax.
Current tax
The tax currently
recoverable
is based on
relievable losses arising in
the year
as the result of film tax relief legislation
.
Relievable losses
differ from net
losses
as reported in the
profit and loss account
because
they include an additional deduction relating to qualifying film development expenditure and exclude items of income or expense
that are taxable or deductible in other years
, as well as items that
are never taxable or deductible. The
company’s tax position
is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 15
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions where practicable, else at the average rate over the period in which the transactions were incurred. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
2
Critical accounting judgements and key sources of estimation uncertainty (continued)
Page 16
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Tax credit estimate
The key accounting estimate within the financial statements for this Company is the valuation of the
film tax credit available. The estimate is based on the assessment of the value of qualifying expenditure
as per HMRC legislations and guidance plus assessment of the qualification of the underlying
production as eligible for the tax relief.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
Year ended
Year ended
31 December
31 December
2021
2020
as restated
£
£
Turnover analysed by class of business
Film Production
9,124,492
30,090,641
Year ended
Year ended
31 December
31 December
2021
2020
£
£
Other significant revenue
Grants received
27,286
Year ended
Year ended
31 December
31 December
2021
2020
as restated
£
£
Turnover analysed by geographical market
United States of America
9,124,492
30,090,641
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 17
4
Auditor's remuneration
Year ended
Year ended
31 December
31 December
2021
2020
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company
12,000
16,000
For other services
Taxation compliance services
2,000
2,250
All other non-audit services
1,000
1,750
3,000
4,000
5
Operating loss
Year ended
Year ended
31 December
31 December
2021
2020
Operating loss for the period is stated after charging/(crediting):
£
£
Government grants
(27,286)
6
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was:
Year ended
Year ended
31 December
31 December
2021
2020
Number
Number
Production staff
4
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
6
Employees (continued)
Page 18
Their aggregate remuneration comprised:
Year ended
Year ended
31 December
31 December
2021
2020
£
£
Wages and salaries
16,441
264,660
Social security costs
1,872
30,042
Pension costs
1,221
6,826
19,534
301,528
Directors remuneration amounting to £nil has been paid during the year (year ending 31 December 2020: £nil).
7
Taxation
Year ended
Year ended
31 December
31 December
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
(2,162,427)
(6,108,313)
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
7
Taxation (continued)
Page 19
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
Year ended
Year ended
31 December
31 December
2021
2020
£
£
Loss before taxation
(2,151,522)
(6,096,628)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (year ending 31 December 2020: 19.00%)
(408,789)
(1,158,359)
Unutilised tax losses carried forward
685,862
Enhanced losses arising from the film tax credit
(1,920,518)
(4,698,177)
Difference between the rate of the corporation tax and the rate of relief under the film tax credit
(518,982)
(1,465,995)
Losses surrendered for group relief
1,214,218
Taxation credit for the period
(2,162,427)
(6,108,313)
8
Debtors
31 December
31 December
2021
2020
as restated
Amounts falling due within one year:
£
£
Corporation tax recoverable
2,162,427
6,108,313
Amounts owed by Parent
1
1
Amounts owed by group subsidaries
3,090,761
3,690,303
Other debtors
10,000
11,541
5,263,189
9,810,158
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 20
9
Creditors: amounts falling due within one year
31 December
31 December
2021
2020
as restated
£
£
Amounts owed to group subsidaries
8,759,778
Taxation and social security
156,657
Other creditors
3,510
Accruals and deferred income
2,723,492
9,987,333
11,639,927
9,990,843
10
Share capital
31 December
31 December
31 December
31 December
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
11
Related party transactions
The company was under control of LFL Productions Limited, a company incorporated in England and Wales, throughout the current period. LFL Productions Limited owns 100% of the issued shares of the company.
The company has taken the advantage of the exemption available under FRS 102 Section 33.1A whereby disclosure nee not be given of transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.
12
Ultimate controlling party
The immediate parent undertaking is LFL Productions Limited, a company registered in England and Wales.
The smallest and largest group in which the results of the company are consolidated is that headed by its ultimate parent undertaking, The Walt Disney Company, a company incorporated in the United States of America. Copies of group accounts of The Walt Disney Company can be obtained from 500 Buena Vista Street, Burbank, California, 91521, USA.
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 21
13
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Dec 2020
£
£
£
Current assets
Debtors due within one year
9,882,690
(72,532)
9,810,158
Creditors due within one year
Other creditors
(10,063,375)
72,532
(9,990,843)
Net assets
50,099
-
50,099
Capital and reserves
Total equity
50,099
-
50,099
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 December 2020
£
£
£
Turnover
30,801,812
(711,171)
30,090,641
Cost of sales
(36,905,726)
711,171
(36,194,555)
Profit for the financial period
11,685
-
11,685
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2020
£
Total adjustments
-
Profit as previously reported
11,685
Profit as adjusted
11,685
Carbonado Industries (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
13
Prior period adjustment (continued)
Page 22
Notes to reconciliation
In the financial statements for the year ending 31 December 2020, certain costs where accrued by management which have not materialised since the finalisation of the financial statements. As a result the year ending 31 December 2020 has been restated to give a better reflection of the companies performance. An adjustment has been made to the comparative income statement to reflect this.
There is no impact on the company's profit or equity in either the current or comparative period for the adjustment above.
2021-12-31
2021-01-01
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CCH Software
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