The Joondalup Film LLP - Period Ending 2021-03-31

The Joondalup Film LLP

Contents

Limited liability partnership information	1
Accountants' Report	2
Financial Statements	3 to 7
Balance Sheet	3
Notes to the Financial Statements	4

The Joondalup Film LLP

Limited liability partnership information

Designated members

Matrix Partnership Services Limited MFF Leasing Limited

Registered office

33 St James's Square London SW1Y 4JS

Accountants

Ritchie Phillips LLP Chartered Accountants Ground Floor South Suite Afon House Worthing Road Horsham West Sussex RH12 1TL

Chartered Accountants' Report to the Members on the Preparation of the Unaudited Statutory Accounts of
The Joondalup Film LLP
for the Year Ended 31 March 2021

In order to assist you to fulfil your duties under the Companies Act 2006, as applied to limited liability partnerships, we have prepared for your approval the accounts of The Joondalup Film LLP for the year ended 31 March 2021 set out on pages 3 to 7 from the limited liability partnership's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance.

This report is made solely to the members of The Joondalup Film LLP, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of The Joondalup Film LLP and state those matters that we have agreed to state to the members of The Joondalup Film LLP, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Joondalup Film LLP and its members as a body for our work or for this report.

It is your duty to ensure that The Joondalup Film LLP has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and results of The Joondalup Film LLP. You consider that The Joondalup Film LLP is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of The Joondalup Film LLP. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Ritchie Phillips LLP
Chartered Accountants
Ground Floor South Suite
Afon House
Worthing Road
Horsham
West Sussex
RH12 1TL

31 January 2022

The Joondalup Film LLP

(Registration number: OC304325)
Balance Sheet as at 31 March 2021

	Note	2021  £	2020  £
Current assets
Debtors	4	14,643,918	14,643,918
Net assets attributable to members		14,643,918	14,643,918
Represented by:
Loans and other debts due to members
Members' capital classified as a liability		(304,492)	(304,492)
Members’ other interests
Members' capital classified as equity		12,085,096	12,085,096
Other reserves		2,863,314	2,863,314
		14,948,410	14,948,410
		14,643,918	14,643,918
Total members' interests
Loans and other debts due to members		(304,492)	(304,492)
Equity		14,948,410	14,948,410
		14,643,918	14,643,918

For the year ending 31 March 2021 the limited liability partnership was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied to limited liability partnerships, relating to small entities.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime, as applied to small limited liability partnerships, and the option not to file the Profit and Loss Account has been taken.

The members acknowledge their responsibilities for complying with the requirements of the Act, as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 with respect to accounting records and the preparation of accounts.

The financial statements of The Joondalup Film LLP (registered number OC304325) were approved by the members and authorised for issue on 31 January 2022. They were signed on behalf of the limited liability partnership by:

.........................................
Matrix Partnership Services Limited
Designated member

The Joondalup Film LLP

Notes to the Financial Statements for the Year Ended 31 March 2021

1	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

General information and basis of accounting

The limited liability partnership is incorporated in England and Wales under the Limited Liability Partnership Act 2000. The address of the registered office is given on the limited liability partnership information page.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of The Joondalup Film LLP is considered to be pounds sterling because that is the currency of the primary economic environment in which the limited liability partnership operates. Foreign operations are included in accordance with the policies set out below.

Going concern

The financial statements have been prepared on a going concern basis as disclosed in the members' report.

Sale and leaseback

The limited liability partnership unconditionally committed to the sale and leaseback agreement for "Blueberry - Le Spectre Aux Balles D'Or" for £11,110,000 on 28 May 2003, whereby it purchased 45.858% of the master prints of this production and leased back the rights to the producer, retaining substantially the risks and rewards of ownership.

The transaction is treated in accordance with FRS102. The cost of the film is capitalised at its fair value as at the date the limited liability partnership acquired the unconditional liability to purchase the rights of the film.

The lease was for a term of 15 years and the cost of the film was amortised on a straight line basis over that period.

The Joondalup Film LLP

Notes to the Financial Statements for the Year Ended 31 March 2021 (continued)

1	Accounting policies (continued)

Members' remuneration and division of profits

The SORP recognises that the basis of calculating profits for allocation may differ from the profits reflected through the financial statements prepared in compliance with recommended practice, given the established need to seek to focus profit allocation on ensuring equity between different generations and populations of members.

Consolidation of the results of certain subsidiary undertakings, the provision for annuities to current and former members, pension scheme charges, the spreading of acquisition integration costs and the treatment of long leasehold interests are all items which may generate differences between profits calculated for the purpose of allocation and those reported within the financial statements. Where such differences arise, they have been included within other amounts in the balance sheet.

Members' fixed shares of profits (excluding discretionary fixed share bonuses) and interest earned on members' balances are automatically allocated and, are treated as members' remuneration charged as an expense to the profit and loss account in arriving at profit available for discretionary division among members.

The remainder of profit shares, which have not been allocated until after the balance sheet date, are treated in these financial statements as unallocated at the balance sheet date and included within other reserves.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the limited liability partnership will not be able to collect all amounts due according to the original terms of the receivables.

Financial instruments

Classification

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the limited liability partnership intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Impairment of financial assets

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the limited liability partnership transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the limited liability partnership, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

The Joondalup Film LLP

Notes to the Financial Statements for the Year Ended 31 March 2021 (continued)

1	Accounting policies (continued)

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

Members' participation rights

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of the amounts subscribed or otherwise contributed, remuneration and profits).

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with FRS 102. A member's participation right results in a liability unless the right to any payment is discretionary on the part of the LLP.

Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.

Where profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment, the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense in the Profit and Loss Account in the relevant year. To the extent that they remain unpaid at the year end, they are shown as liabilities in the Balance Sheet.

Conversely, where profits are divided only after a decision by the LLP or its representative, so that the LLP has an unconditional right to refuse payment, such profits are classed as an appropriation of equity rather than as an expense. They are therefore shown as a residual amount available for discretionary division among members in the Profit and Loss Account and are equity appropriations in the Balance Sheet.

Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment.

All amounts due to members that are classified as liabilities are presented in the Balance Sheet within 'Loans and other debts due to'. Amounts due to members that are classified as equity are shown in the Balance Sheet within 'Members' other interests'.

2	Particulars of employees

The average number of persons employed by the limited liability partnership during the year was 0 (2020 - 0).

The Joondalup Film LLP

Notes to the Financial Statements for the Year Ended 31 March 2021 (continued)

3	Investments held as fixed assets

Other investments

	Unlisted investments £	Total £
Cost
At 1 April 2020	11,110,000	11,110,000
At 31 March 2021	11,110,000	11,110,000
Provision for impairment
At 1 April 2020	11,110,000	11,110,000
At 31 March 2021	11,110,000	11,110,000
Net book value
At 31 March 2021	-	-
At 31 March 2020	-	-

Intangible fixed assets are the film master print for 'Blueberry - Le Spectre Aux Balles D'Or' and have been fully amortised as at 31 March 2021.

4

Debtors

	2021  £	2020  £
Other debtors	14,643,918	14,643,918
	14,643,918	14,643,918
Less non-current portion	(14,643,918)	(14,643,918)
Total current trade and other debtors	-	-

Included within this amount are other debtors of £14,463,918 (2020 - £14,643,918) in respect of distributions made to members in advance of profits being earned and allocated.

5	Financial commitments, guarantees and contingencies

On 11 December 2003 the LLP entered into an agreement whereby it assigned its rights to receive the Minimum Rental Payments under the licence agreement to HSBC Republic Bank (UK) Limited. The LLP also provided a charge over its assets, primarily being the acquired rights to the motion picture. The assignment and charge relate to security for loans obtained by members from HSBC Republic Bank (UK) Limited to fund their subscription to the limited liability partnership. These loans have now been repaid.