Abbreviated Company Accounts - H&C TV LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

During the year the company made a loss of £919,768 and, at the balance sheet date, had net current liabilities of £146,969. In light of this certain key shareholders have agreed to continue to support the company for the foreseeable future. The directors have, therefore, prepared the financial statements on a going concern basis.

The financial statements do not reflect any adjustments that would be made if they were to be prepared on a basis other than the going concern basis.

Turnover policy
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery 33 1/3% Straight line

Intangible assets amortisation policy
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.

Programme and production library
Programme and production library are valued at cost less accumulated amortisation. Bought in programme costs are amortised over the period of the licence. Commissioned programme costs are amortised over a useful economic life of 5 years. Own production costs are written off in the year incurred, except when the programmes might run over several years in which case the own production costs are written off over the useful economic life.

Other accounting policies
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

Government grants
Grants are credited to the Profit & Loss as they are received because the criteria for receipt have already been met.


Deferred income

Advertising revenue is recognised in the accounting period in which the services are rendered by the company by reference to the length of term of the service agreement.

The deferred portion of the proceeds shall be recognised as revenue only when the entity has fulfilled its obligations by supplying the service.


Website development costs

Website development costs are initially recognised at cost and amortised on a straight line basis over an expected useful economic life of 3 years.

The net book value of tangible fixed assets includes £9,754 (2013: £7,816) in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £11,588 (2013: £3,526) for the year.