NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Heart Movies Ltd is a private company, limited by shares, registered in England and Wales, registration number 14228700. The registered office address is Flat 17, Reverence House 8 Lismore Boulevard, Colindale, London, NW9 4DD.
The principal activity of the company is that of motion picture production activities.
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 company's functional and presentational currency is pound sterling.
The following principal accounting policies have been applied:
Turnover from motion picture production activities is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover from motion picture production activities is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Interest income is recognised in profit or loss using the effective interest method.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The company is eligible to claim a tax credit on film 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.
Work in progress represents the cost of producing the film. Production costs are amortised to the Profit and loss account over the period in which the rights to the relevant film is being exploited by the company.
Short-term debtors are measured at transaction price, less any impairment.
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