MFL PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 2 OCTOBER 2023
MFL Productions Limited is a private company limited by shares and regsitered in England & Wales. The address of its registered office is 39-41 Charing Cross Road, London, WC2H 0AR.
2.Accounting policies
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Basis of preparation of financial statements
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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 following principal accounting policies have been applied:
The company meets its day to day working capital requirements from the the utilisation of recoupable but non-returnable theatrical production funding. As a result the directors consider it is appropriate to prepare the company's financial statements on the going concern basis. The financial statements do not include adjustments that would result from the withdrawal of this financial support.
Revenue comprises the company's share, as producer, of admissions receipts after the theatres have deducted relevant commissions and banking charges plus non returnable production funding. Revenue is recognised in the period to which the attendance occurs.
Interest income is recognised in profit or loss using the effective interest method.
Tax is recognised in the Statement of Income and Retained Earnings. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
The Company is eligible to claim a tax credit on theatre production costs; the tax credit comprises relief based on total net costs and an additional deduction for enhanceable expenditure. The Company claims a payment based on the amount of enhanced expenditure and carries losses arising from total net costs forward against future profits.
Short term debtors are measured at the transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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