Abbreviated Company Accounts - DAVID PLATZ MUSIC LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and with the Financial Reporting Standard for Smaller Entities (effective January 2015). The company has taken advantage of the exemption conferred by the Financial Reporting Standard for Smaller Entities (effective January 2015) not to prepare a cash flow statement. The following principal accounting policies have been applied:

Turnover policy
Credit is taken for royalty income, arising from the music publishing and related activities, which has been received or declared by users by the year end. Credit is taken for fees, arising from the provision of management services, in respect of the client’s accounting periods ending on or before the end of the year under review and to the extent credit has not been taken previously.

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

Freehold buildings 1% and 10%
Fixtures, fittings & equipment 20% and 25%
Motor vehicles 25%

Intangible assets amortisation policy
Purchased music copyrights are capitalised and are stated at cost less amortisation and provision for impairment. The cost is amortised over the foreseeable economic life of the rights based on projected annual income over that period. The economic life of the music copyrights is reviewed annually.

Valuation information and policy
Fixed asset investments are stated at cost less provision for diminution in value.

Other accounting policies
Cost of sales

Cost of sales includes royalties payable and other direct costs. Royalties payable are written-off to the extent that amounts are contractually paid or are payable in respect of the year under review.

Pensions

The pension costs charged in the accounts represent the contributions payable by the company during the year.

Deferred taxation

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date except that the recognition of deferred tax assets is limited to the extent that the company anticipates to make sufficient taxable profits in the future to absorb the reversal of the underlying timing differences. Deferred tax balances are not discounted.

4Fixed assets Investments
The company’s investments relate to its interest in the shares of subsidiary companies and participating interests, all of which are incorporated in Great Britain.

Unless noted all financial information relates to the year ended 30 June 2016.

The following are, direct and indirect, wholly-owned subsidiary companies.

Onward Music Ltd is a music publisher - the total of share capital and reserves amounted to £1,477,782 and the profit for the year was £298,451.

Cube Records Ltd is dormant - the total of share capital and reserves amounted to £1 and the profit for the year was £nil.

Hummingbird Productions Ltd is a record producer - the total of share capital and reserves amounted to £5,614 and the profit for the year was £1,439.

Noeland Productions Ltd is a record producer - the total of share capital and reserves amounted to £16,725 and the profit for the year was £6,217.

Tarantula Productions Ltd is a record producer - the total of share capital and reserves amounted to £8,255 and the profit for the year was £2,574.

Tuesday Productions Ltd is a record producer - the total of share capital and reserves amounted to £39,371 and the profit for the year was £9,897.

The following are companies, all (unless noted) of which are music publishers, in which a participating interest of at least 20% is held:

Coda Music Ltd - at 31 December 2015, the total share capital and reserves amounted to £28,253 and the profit for the year was £1,226.

Newquay Music Ltd - at 31 March 2016, the total deficit in share capital and reserves amounted to £46,626 and the profit for the year was £6,260.

Harmony Music Ltd - the total share capital and reserves amounted to £173,882 and the profit for the year was £699.

Key Music Ltd - the total share capital and reserves amounted to £26,131 and the profit for the year was £189.

Kew Music Holdings Ltd (a holding company only) – at 31 December 2015 the total share capital and reserves was £1,000 with no profit or loss.