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.
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 £.
Despite the fact that the liabilities exceed the assets as at 2 7 April 20 21 , 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 script and film development was on hold during the year due to the Covid-19 pandemic . This has now recommenced . The director has secured further funding from an investor which the company should expect to receive as in the first half of 2022 . Therefore, the director is satisfied that the going concern assumption remains appropriate.
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 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.
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 year was:
Loans comprise a Bounce Back Loan provided under the Government's coronavirus response scheme. Standard terms are repayment over a six year period, with no repayments for the first 12 months, and a fixed interest rate of 2.5%. The loan is unsecured,
During the period remuneration of key management personnel was £nil.
During the year, the company transacted with Tipton Films Limited; a company which is a
related party by virtue of common control. At the balance sheet date, the company was owed £100 (2020: £nil) from Tipton Films Limited. During the year, the company made payments of £1,000 and received £900 from Tipton Films Limited.
Dividends totalling £0 (2020 - £0) were paid in the year in respect of shares held by the company's directors.
During the year, the company operated a loan account with the director, Mr D McCall. At the year end , £ 11,848 was owed by Mr D McCall (20 20 : £ 30,185 due to Mr D McCall ) 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.