Abbreviated Company Accounts - MODERN TELEVISION LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

At the balance sheet date the company is dependent on future short and long term funding being available to enable it to continue operating and to meet its liabilities as they fall due. The company continues to be reliant on the support of its shareholders for its continued operation. The shareholders have expressed their willingness to provide necessary financial support in some suitable form should the need arise.

Turnover policy
Production turnover comprises broadcaster licence fees and other pre-sales receivable for work carried out in producing television programmes. Production revenue is recognised over the period of the production. Gross profit on production activity is recognised over the period of production and in accordance with the underlying contract. Overheads on productions are recognised as they arise and underspends are recognised on completion of the productions.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & machinery - 25% straight line
Fixtures & fittings - 25% straight line
Equipment - 33% straight line

Other accounting policies
Investments

Investments held as fixed assets are shown at cost less provision for impairment.

Operating leases

Rentals under operating leases are charged to the Profit and loss account on a straight line basis over the lease term.

Work in progress

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Deferred taxation

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

3Fixed assets Investments
Fixed asset investments

Investments
in associates
£
Cost or valuation

At 1 June 2013 100
Additions 100
At 31 May 2014 200

Net book value
At 31 May 2014 200
At 31 May 2013 100

Participating interests

During the year, Modern Television Limited acquired 100% shareholding in Modern Radio Limited.

4Transactions with directors

The company was under the control of Mr G R Jones, who is the majority shareholder.
Within creditors due within one year is an amount of £10 owed by the company to Mr G R Jones (2013:£10). No interest is charged on this loan and it is anticipated to be repaid within one year.

Debtors include £80,878 (2013: £67,507 ) due from Modern Television (DODT) Limited, a company in which 100% shares are held by Modern Television Limited.

Within creditors die over one year is an amount of £99,375 owed by the company to Grumpy Limited (2013: £nil) , a company in which Mr G Rhys Jones is a director.