Bette Davis is Alive and Well and Living in Liverpool The Movie Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Ann's Close, London, SW1X 8EG.
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.
Despite the fact that the liabilities exceed the assets as at 28 April 2018, the director is of the opinion that sufficient funding is available to the company and/or will be made available to the company to enable it to meet its own liabilities as and when they fall due.
The film is currently in development and the director is not aware of any material uncertainty arising that would cast doubt on the company's ability to continue as a going concern. Funds to meet the cashflow requirements are in place via further upcoming finance plans and the director does not anticipate any material overspend. Therefore, the director is satisfied that the going concern assumption remains appropriate.
The financial statements are made up to 28 April 2018 with the period being shortened for reporting purposes.
These financial statements represents a 364 day period. As the previous year's financial statements cover a 365 day period the comparative amounts presented in the financial statements are not entirely comparable.
The costs of developing films and TV programmes are capitalised in the period incurred and amortisation commences when the asset is in use.
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
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, 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.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Revenue recognition
We record sales of goods and services only when a film sales agreement is in place, delivery has occurred, or services have been rendered and collectability of the fixed or determinable sales price is reasonably assured.
Revenue not meeting these conditions is deferred. Revenue recognised in the profit and loss account but not yet invoiced is held on the balance sheet within prepayments and accrued income. Revenue invoiced, but not yet recognised in the profit and loss account, is held on the balance sheet within accruals and deferred income.
In the application of the company’s accounting policies, the director is 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.
There have been no critical judgements, estimates and assumptions made in the preparation of these financial statements.
The average monthly number of persons (including directors) employed by the company during the period was 1 (2017 - 1).
The ordinary shares rank equally in terms of voting rights to participate in all dividend distributions and rights to participate in any capital distribution on winding up.
During the year a further 33 ordinary £1 shares were issued and fully paid at par at a premium of £999 per share.
The total consideration received by the company during the year for all share issues in the year was £33,000. After taking into account share capital and EIS funding fees, it leaves a total balance of £149,850 (2017: £100,863) for share premium at the balance sheet date.
During the year, the company operated a loan account with the director, Mr D McCall. Mr D McCall withdrew £17,368 from the company and introduced funds to the company totalling £22,093. Therefore, £20,513 (2017: £15,788) was due to Mr D McCall at the balance sheet date and this amount was included within other creditors.
The loan is repayable on demand and no interest is being charged on the outstanding amount.
The ultimate controlling party is the director Mr D McCall by virtue of his majority shareholding in the company and day to day running of the company.