Royal Exchange Theatre Trading Limited (formerly Royal Exchange Theatre Catering Limited)
Notes to the Financial Statements
For the Year Ended 31 August 2019
Royal Exchange Theatre Trading Limited is a private company limited by share capital incorporated in England, registered number 01265513. The address of the registered office is Royal Exchange Theatre, St Ann's Square, Manchester, M2 7DH.
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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
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The following principal accounting policies have been applied:
On 30 March 2020, the theatre closed its doors and the provision of catering services was temporarily suspended as a result of the Covid-19 pandemic. After making enquries, the Directors believe that the Royal Exchange Theatre Trading Company Limited will continue in operational existence for the foreseeable future, and that, based on future financial forecasts and on the current available cash reserves of the company, the organisation will be in a position to continue to meet its liabilities as they fall due for at least 12 months from signing these financial statements. The accounts have therefore been prepared on a going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, 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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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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