ACCOUNTS - Final Accounts preparation

FOURTH CHORD RECORDS LIMITED - Company Information

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Registered number: 06119947

FOURTH CHORD RECORDS LIMITED

UNAUDITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2018

FOURTH CHORD RECORDS LIMITED

REGISTERED NUMBER: 06119947

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2018

	2018	2018	2017	2017
Note	£	£	£	£


Current assets
Debtors: amounts falling due within one year	4	68,753		583
Cash at bank and in hand		6,611		61,909
		75,364		62,492
Creditors: amounts falling due within one year	5	(75,361)		(62,489)
Net current assets			3		3

Net assets			3		3

Capital and reserves
Called up share capital	3	3
	3	3

The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

S J Porter

Director

Date: 23 September 2019

The notes on pages 2 to 4 form part of these financial statements.

Page 1

FOURTH CHORD RECORDS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

1.	General information

Fourth Chord Records Limited is a private company limited by shares, incorporated in the United Kingdom and registered in England and Wales. The address of its registered office is Regina House, 124 Finchley Road, London, NW3 5JS and its principal place of business is Beechurst, Farnham Park Lane, Farnham Royal, Buckinghamshire, SL2 3LP.

2.Accounting policies

2.1

Basis of preparation of financial statements

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.

The company's functional and presentational currency is GBP.

The following principal accounting policies have been applied:

2.2

Revenue

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of turnover can be measured reliably;

∙it is probable that the company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Turnover represents invoiced income, royalties received and the net sales of recorded material after providing for potential returns, net of VAT.
Non-recoupable album advances are reflected in the period in which they are receivable.

2.3

Debtors

Short term debtors are measured at transaction price, less any impairment.

2.4

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

Page 2

FOURTH CHORD RECORDS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

2.Accounting policies (continued)

2.5

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from third parties and loans to/from related parties.

2.6

Creditors

Short term creditors are measured at the transaction price.

2.7

Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

Employees

The average monthly number of employees, including directors, during the year was 2 (2017 - 2).

Debtors

					2018	2017
					£	£


Other debtors	4,100	583
Prepayments and accrued income	64,653	-
	68,753	583

5.	Creditors: Amounts falling due within one year
		2018	2017
		£	£

Trade creditors	3,600	6,505
Other creditors	3,914	3,914
Accruals and deferred income	67,847	52,070
	75,361	62,489

Page 3

FOURTH CHORD RECORDS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

6.	Transactions with directors and related parties

Fees totalling £15,062 (2017: £22,837) were payable to F D Rossi and the Estate of R Parfitt. F D Rossi also charged the company £20,000 (2017: £nil) in respect of studio hire fees and at the reporting date the total amount owed by the company was £31,300 (2017: £28,051).
Commission of £10,157 (2017: £14,087) was payable to Duroc Media Limited, a company under the control of S J Porter. At the balance sheet date Duroc Media Limited was owed £23 (2017: £2) by the company.

Page 4