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REGISTERED NUMBER:
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REPORT OF THE MEMBERS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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WESTERDALE PRODUCTIONS LLP |
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REGISTERED NUMBER:
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REPORT OF THE MEMBERS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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FOR |
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WESTERDALE PRODUCTIONS LLP |
WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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General Information | 1 |
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Report of the Members | 2 |
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Report of the Independent Auditors | 5 |
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Income Statement | 7 |
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Balance Sheet | 8 |
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Reconciliation of Members' Interests | 9 |
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Notes to the Financial Statements | 11 |
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WESTERDALE PRODUCTIONS LLP |
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GENERAL INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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DESIGNATED MEMBERS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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10 Orange Street |
Haymarket |
London |
WC2H 7DQ |
WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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REPORT OF THE MEMBERS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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The members present their report with the financial statements of the LLP for the year ended 30 September 2020. |
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PRINCIPAL ACTIVITY |
The Partnership was formed to conduct a film production business. Based in the UK, it draws on a deep pool of talent, both on and off screen, to produce and delivery high quality films to the Partnership's commissioning distributor ("the Commissioning Distributor"). |
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The Partnership has adopted a sophisticated project selection procedure to manage risks from the outset and will only produce films where there is a strong likelihood of distribution and where the remuneration it receives is calculated by reference to gross sales receipts from the exploitation of the films it produces. |
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REVIEW OF BUSINESS |
On 26th July 2019 Ingenious Film Partners 2 LLP (the "IFP Partnership") received the decision of the Upper Tribunal on its appeal against the decision of the First-tier Tax Tribunal against enquiry closure notices issued by HMRC. The Upper Tribunal concluded that the IFP Partnership was not trading and did not have a view to profit. The finding that the IFP Partnership did not have a view to profit means the IFP Partnership (under the law as it existed in 2019) would be taxed as a body corporate subject to corporation tax rather than as a partnership whose members are subject to tax. However, in the March 2020 budget the government announced its intention to introduce retrospective legislation to ensure that a Limited Liability Partnership continues to be taxed as a partnership where a partnership tax return was filed on the understanding that the partnership had a view to profit, even where it is subsequently found not to have had a view to profit. This became law as part of Finance Act 2020. Accordingly, any tax impact of the final decision is not expected to be reflected in the financial statements of Westerdale Productions LLP for the years where the Westerdale Productions LLP tax returns were filed on the understanding that the partnership had a view to profit. However, subject to how the tax case is finally resolved, the financial statements may need to reflect the tax impact of the final decision on Westerdale Productions LLP for the years where following the Upper Tribunal decision the partnership's tax returns were submitted on the basis that the partnership is a body corporate subject to corporation tax. |
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The IFP Partnership was granted permission to appeal the decision of the Upper Tribunal on the issues of trading and view to profit by the Court of Appeal in February 2020. The appeal hearing before the Court of Appeal took place on 11 March 2021. The partnership is still awaiting the outcome of the appeal hearing. |
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FUTURE DEVELOPMENTS |
The Partnership is well placed to benefit from the future exploitation of its film productions by the Commissioning Distributor and from its relationship with Fernlakes Limited (Formerly known as Ingenious Media Holdings Limited) and its subsidiaries ("the Ingenious Group"). |
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DESIGNATED MEMBERS |
The designated members during the year under review were: |
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RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS |
The profit for the year before members' remuneration and profit shares was £20,435 (2019 - £153,499 profit). |
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WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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REPORT OF THE MEMBERS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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MEMBERS' INTERESTS |
The Designated Members are not entitled to drawings. In accordance with the Members' Agreement, drawings shall be made at the discretion of Goldwoodshire Limited (Formerly known as Ingenious Media Investments Limited), the operator of the Partnership ("the Operator"). |
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Members' capital is subscribed in accordance with the current Members' Agreement, and retained by the Partnership until such time as the members agree to repay that capital. There were no transfers of members' capital to debt during the current or prior year. |
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The operating cash requirements of the Partnership shall be met out of the members' initial contributions. No member shall be required to make any further funding available after their admission as a member (save to the extent of their liability on a winding up). |
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MEMBERS' RESPONSIBILITIES STATEMENT |
The members are responsible for preparing the Report of the Members and the financial statements in accordance with applicable law and regulations. |
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Legislation applicable to limited liability partnerships requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under legislation applicable to limited liability partnerships the members 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 LLP and of the profit or loss of the LLP for that period. In preparing these financial statements, the members are required to: |
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- | 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 LLP will continue in business. |
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The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the members are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the LLP's auditors are unaware, and each member has taken all the steps that he ought to have taken as a member in order to make himself aware of any relevant audit information and to establish that the LLP's auditors are aware of that information. |
WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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REPORT OF THE MEMBERS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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AUDITORS |
The auditors, Shipleys LLP, Statutory Auditor, are deemed to be re-appointed under s487(2) of the Companies Act 2006 as modified by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. |
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ON BEHALF OF THE MEMBERS: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WESTERDALE PRODUCTIONS LLP |
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Opinion |
We have audited the financial statements of Westerdale Productions LLP (the 'LLP') for the year ended 30 September 2020 which comprise the Income Statement, Balance Sheet, Reconciliation of Members' Interests and Notes to the Financial Statements, including a summary of 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 Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the LLP's affairs as at 30 September 2020 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 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. |
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Basis for opinion |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the LLP 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. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the members' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the members have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the LLP's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The members are responsible for the other information. The other information comprises the information in the Report of the Members, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WESTERDALE PRODUCTIONS LLP |
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Matters on which we are required to report by exception |
We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to LLPs 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 |
- | we have not received all the information and explanations we require for our audit; or |
- | the members were not entitled to prepare the financial statements in accordance with the small LLPs regime. |
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Responsibilities of members |
As explained more fully in the Members' Responsibilities Statement set out on page three, the members 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 members determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the members are responsible for assessing the LLP'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 members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so. |
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Auditors' 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 a Report of the Auditors 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. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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Use of our report |
This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the LLP and the LLP's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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10 Orange Street |
Haymarket |
London |
WC2H 7DQ |
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WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
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TURNOVER |
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Administrative expenses | ( |
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OPERATING PROFIT |
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Interest receivable and similar income | 6 |
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PROFIT FOR THE FINANCIAL YEAR
BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS |
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WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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BALANCE SHEET |
30 SEPTEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors | 8 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 9 | ( |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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NET ASSETS ATTRIBUTABLE TO
MEMBERS |
372 |
139,186 |
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LOANS AND OTHER DEBTS DUE TO
MEMBERS |
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MEMBERS' OTHER INTERESTS |
Capital accounts | 15,715,013 | 15,715,013 |
Other reserves |
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372 | 139,186 |
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TOTAL MEMBERS' INTERESTS |
Members' other interests | 372 | 139,186 |
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The financial statements were approved by the members of the LLP and authorised for issue on
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WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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RECONCILIATION OF MEMBERS' INTERESTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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EQUITY |
Members' other interests |
Members' |
capital |
(classified |
as | Other |
equity) | reserves | Total |
£ | £ | £ |
Balance at 1 October 2019 | 15,715,013 | (15,575,827 | ) | 139,186 |
Profit for the financial year available for
discretionary division among members |
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20,435 |
20,435 |
Members' interests after profit for the year | 15,715,013 | (15,555,392 | ) | 159,621 |
Drawings | - | (159,249 | ) | (159,249 | ) |
Balance at 30 September 2020 | 15,715,013 | (15,714,641 | ) | 372 |
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DEBT | TOTAL |
Loans and other debts due to | MEMBERS' |
members less any amounts due | INTERESTS |
from members in debtors |
Other |
amounts | Total |
£ | £ |
Amount due to members | - |
Amount due from members | - |
Balance at 1 October 2019 | - | 139,186 |
Profit for the financial year available for
discretionary division among members |
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20,435 |
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Members' interests after profit for the year | - | 159,621 |
Drawings | - | (159,249 | ) |
Amount due to members | - |
Amount due from members | - |
Balance at 30 September 2020 | - | 372 |
WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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RECONCILIATION OF MEMBERS' INTERESTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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EQUITY |
Members' other interests |
Members' |
capital |
(classified |
as | Other |
equity) | reserves | Total |
£ | £ | £ |
Balance at 1 October 2018 | 15,715,013 | (15,360,026 | ) | 354,987 |
Profit for the financial year available for
discretionary division among members |
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153,499 |
153,499 |
Members' interests after profit for the year | 15,715,013 | (15,206,527 | ) | 508,486 |
Drawings | - | (369,300 | ) | (369,300 | ) |
Balance at 30 September 2019 | 15,715,013 | (15,575,827 | ) | 139,186 |
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DEBT | TOTAL |
Loans and other debts due to | MEMBERS' |
members less any amounts due | INTERESTS |
from members in debtors |
Other |
amounts | Total |
£ | £ |
Amount due to members | - |
Amount due from members | - |
Balance at 1 October 2018 | - | 354,987 |
Profit for the financial year available for
discretionary division among members |
- |
153,499 |
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Members' interests after profit for the year | - | 508,486 |
Drawings | - | (369,300 | ) |
Amount due to members | - |
Amount due from members | - |
Balance at 30 September 2019 | - | 139,186 |
WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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1. | STATUTORY INFORMATION |
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Westerdale Productions LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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The Partnership was formed to conduct a film production business. Based in the UK, it draws on a deep pool of talent, both on and off screen, to produce and delivery high quality films to the Partnership's commissioning distributor ("the Commissioning Distributor"). |
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The Partnership has adopted a sophisticated project selection procedure to manage risks from the outset and will only produce films where there is a strong likelihood of distribution and where the remuneration it receives is calculated by reference to gross sales receipts from the exploitation of the films it produces. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The Partnership's business activities, together with the factors likely to affect its future development, performance and position have been reviewed by the members. |
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The members would like to draw attention to the Covid-19 pandemic and the potential economic impact the virus will have in the coming months. In establishing whether to continue to report under the going concern assumption the members have considered the following points: |
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- The impact on the day to day trade of the Partnerships' business |
- The impact on the the Partnerships' cash position of a period of minimum activity |
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Having assessed the risks facing the Partnership as described above and as set out in the Member's Report, its financial position, profit and cash flow forecasts, the members believe that the Partnership is well placed to manage its business successfully and will be able to maintain positive cashflows for the foreseeable future. |
The members are aware that the company is in a net liability position at the year end, and have considered the cash balance held by the company, and the projected administrative and other costs for the forthcoming 12 months from the date of signing of the financial statements, and consider there to be adequate resources in place. Accordingly, the members continue to adopt the going concern basis in preparing the Annual Report and Financial Statements. |
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Turnover |
Turnover represents amounts receivable for services provided in the normal course of business, net of VAT. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Taxation |
No current or deferred taxation is provided for in the financial statements as the liability for taxation falls on the members. |
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3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
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In the application of the Partnership's accounting policies which are described in Note 1, the members 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. |
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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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
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Critical accounting judgements in applying the accounting policies |
The following are the critical judgements that the members have made in the process of applying the Partnership's accounting policies and that have the most significant effect on the amounts recognised in the financial statements: |
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Impairment of investments |
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, and impairment loss is recognised in profit or loss as described below. |
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Financial assets |
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date. |
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Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
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4. | EMPLOYEE INFORMATION |
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The average number of employees during the year was NIL (2019 - NIL). |
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5. | AUDITORS' REMUNERATION |
2020 | 2019 |
£ | £ |
Fees payable to the LLP's auditors for the audit of the LLP's
financial statements |
3,400 |
3,400 |
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6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2020 | 2019 |
£ | £ |
Deposit account interest |
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WESTERDALE PRODUCTIONS LLP (REGISTERED NUMBER: OC382950) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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7. | INFORMATION IN RELATION TO MEMBERS |
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The average number of members in the year was 16 (2019 - 17). |
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8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
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Other debtors |
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9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Other creditors |
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10. | CONTINGENT LIABILITIES |
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Charges are in place against the films entitled "The Drop" and "Miss Peregrine's Home For Peculiar Children" in favour of the following parties to secure their interests in the copyright of and title to the films: |
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Twentieth Century Fox Film Corporation |
Fox Searchlight Pictures, Inc |
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11. | ULTIMATE CONTROLLING PARTY |
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The Ingenious Member controls the financial and operating policies of the Partnership. The ultimate parent company of the Ingenious Member is Freeshire Limited (Formerly known as Ingenious Media Limited). |