EdgeFilm_Limited - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 30 June 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

EdgeFilm Limited is a private company limited by shares incorporated in England and Wales. The registered office is 25 Powis Terrace, London, W11 1JJ.

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 amounts 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.

Turnover represents production fees receivable net of VAT.

Income for film production is recognised when the company is considered to have fulfilled its contracted delivery obligations.

In the event that any programme under production spans a year end, income is partially recognised to the extent that the company has fulfilled its obligations under the contract.

The recognition is based on the fair value of the services provided as at the year end as a proportion of the total fair value of the contract.

Production and development costs

Production and development costs, in respect of contracted films, are taken to deferred cost assets on the balance sheet until the point that contractual obligations have been fulfilled, except:

i. Excess costs not anticipated to be recovered from the attributable income is fully provided in the year when any excess cost arises, and

ii. In the event that any film under production spans a year end the costs are recognised as costs in the Profit and Loss account as matched to attributable Income also recognised in the period. Accordingly profits or losses of each production are recognised to the extent of completion of the production at the year end.

Costs incurred prior to an exploitation contract being in place (e.g. development costs) are written off in the accounting period incurred.

Investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Cash at bank and in hand 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.

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.

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.

Basic financial liabilities, including creditors, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. 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. Gains and losses arising on translation are included in the profit and loss account for the period.

The company also has significant holdings in undertakings which are not consolidated:

A C De La Mata is a director and shareholder of Mandrake Limited. As at 30 June 2018 Mandrake Limited owed the company £Nil (2017: £21,342).

A C De La Mata is a director and shareholder of Edgefilm HK. As at 30 June 2018 Edgefilm HK owed the company £481,347 (2017: £481,347).

A C De La Mata is a director and shareholder of MIHK Limited. During the year the company loaned £22,042 to MIHK and paid costs on behalf of MIHK of £nil (2017: £12,197). MIHK paid costs of £3,212 on behalf of the company (£2017: £nil). In addition at the year end, MIHK owed the company £43,573 of production fees. As at 30 June 2018 MIHK owed the company £75,761 (2017: £13,358).