TOO CLOSE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Too Close Ltd is a private company limted by shares and registered in England & Wales. The address of its registered office and principle place of business is 71 Queen Victoria Street, London, EC4V 4BE.
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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
At the reporting date the company had net assets of £8,266 and meets its day to day working capital requirements through the utilisation of its own funds and a loan from its immediate parent undertaking.
Subsequent to year-end the Directors intend to close down the company following completion of the film. This will result in Too Close Limited ceasing to trade therefore the Directors have concluded that it is no longer appropriate to prepare the financial statements on a going concern basis. There have been no adjustments made to the financial statements as a result of the application of the non-going concern basis of accounting.
Revenue comprises production revenue and non refundable advances on distribution revenue.
Production revenue is recognised in the period it is contractually due. Where revenue received exceeds costs incurred to date and profits are not anticipated, the balance is treated as deferred income and held on the Statement of Financial Position until further costs are incurred or profits anticipated. At this point the deferred income is released to the Statement of Income and Retained Earnings.
Distribution revenue is recognised in the period it is earned and non refundable advances are recognised in the period they are contractually due.
Interest income is recognised in profit or loss using the effective interest method.
All borrowing costs are recognisd in profit or loss in the year in which they are incurred.
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