NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
4AD Music Limited is a private company, limited by shares, registered in England and Wales, registration number 03914397. The registered office address is Elsley Court, 20-22 Great Titchfield Street, London, W1W 8BE.
The principal activity of the company continued to be that of music publishing.
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 the Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
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Functional and presentation currency
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The company's functional and presentational currency is pound sterling.
The financial statements have been prepared on the going concern basis as the shareholders have confirmed to continue to provide necessary funding in order for the company to maintain operations and meet liabilities in full for at least the next 12 months. On this basis, the directors are satisfied that the financial statements should be prepared on a going concern basis.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover from music publishing is recognised when it is probable the company will receive the rights to the consideration due under the contract.
Royalties receivable are recognised at the year end date by the company.
Royalties payable are calculated by reference to statements of account used for determining royalties receivable.
(i) Advances from licences are carried forward as deferred income until the earlier of recoupment
against contractual royalties due, agreement expiry or recognition that recoupment is unlikely to
take place.
(ii) Advances made to artists in respect of future royalties are treated as current assets and written off to the profit and loss account when the royalties are recognised. Provision is made against an advance where it is considered that recoupment is unlikely to take place.
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