PARADISE CITY PRODUCTIONS LIMITED |
Notes to the Accounts |
for the year ended 31 December 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Going concern |
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To date, the company has incurred losses and consequently, its continued existence rests on financial support from its parent company and possibility of winning future contracts. After making enquiries, the directors have formed the judgment that at the time of approving the financial statements, there is reasonable expectation that the company has adequate resources to continue in operational existence for a foreseeable future. For this reason, the directors continue to adopt the going concern basis in preparing these financial statements. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Equipment and furniture |
25% on reducing balance |
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Work in progress |
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Work in progress is measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of work in progress is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
3 |
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2 |
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3 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
105,406 |
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5,599 |
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Accrued income |
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4,799 |
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82,787 |
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Prepayments |
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2,800 |
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2,750 |
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VAT receivable |
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2,709 |
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1,578 |
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Other debtors |
6,240 |
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6,240 |
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121,954 |
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98,954 |
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4 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Trade creditors |
107,967 |
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66,855 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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714,148 |
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499,007 |
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PAYE liability |
5,043 |
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3,054 |
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Pension liability |
681 |
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395 |
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Deferred income |
13,661 |
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- |
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Accrued expenses |
850 |
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22,086 |
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842,350 |
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591,397 |
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5 |
Related party disclosures |
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Included within the debtors is accrued income in the sum of £4,396 receivable from Paradise City Films (formerly La Cinefacture), a company that holds shares in Paradise City SAS, France. |
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Included within the debtors is accrued income in the sum of £403 receivable from Drift Films Ltd, a company in which Ms Naima Abed and Ms Emilie Georges are directors. |
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Included within the creditors is a balance in the sum of £544,119 payable to Paradise City SAS (incorporated in France), the ultimate parent company. |
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Included within the creditors is a balance in the sum of £170,029 payable to Paradise City Films, France (formerly La Cinefacture). |
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6 |
Controlling party |
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The ultimate parent company is Paradise City SAS (incorporated in France). Ms Emilie Georges is the person of significant control as she directly or indirectly holds majority of shares in Paradise City SAS. |
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7 |
Other information |
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PARADISE CITY PRODUCTIONS LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
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Devonshire House |
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582 Honeypot Lane |
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Stanmore |
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Middlesex |
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HA7 1JS |