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Registered number: 07801244


EURASIAN BROADCASTING ENTERPRISE LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

















































Strata Audit
Statutory Audit Firm
3 Harmony Court 
Harmony Row
Dublin 2 
 
 

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
COMPANY INFORMATION


Directors
Michael O’Rourke 
Dwyer McCaughley 
Giorgi Pruidze 




Company secretary
Michael O’Rourke



Registered number
07801244



Registered office
C/O Capepoint Company Limited
1 Princeton Mews

167-169 London Road

Kingston Upper Thames

Surrey

United Kingdom




Independent auditors
Strata Audit
Statutory Audit Firm

3 Harmony Court

Harmony Row

Dublin 2

Ireland




Bankers
AIB
1 Adelaide Road

Dublin 2

Ireland





AIB

140 Lower Drumcondra Road

Dublin 9

Ireland




Solicitors
A&L Goodbody LLP
International Financial Services Centre

3 Dublin Landings

North Wall Quay

Dublin 1

Ireland





 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
CONTENTS


Page
Group Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Directors' Responsibilities Statement
 
 
5
Independent Auditors' Report

 
6 - 9
Consolidated Statement of Profit or Loss

 
10
Consolidated Statement of Other Comprehensive Income

 
11
Consolidated Statement of Financial Position
 
 
12 - 13
Company Statement of Financial Position
 
 
14 - 15
Consolidated Statement of Changes in Equity
 
 
16
Company Statement of Changes in Equity
 
 
17
Consolidated Statement of Cash Flows
 
 
18
Company Statement of Cash Flows
 
 
19
Notes to the Consolidated Financial Statements
 
 
20 - 56

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report on the group for the financial year ended 31 December 2023.

Review of the Group’s Business
 
The group experienced an increase in turnover in comparison to the prior year of 49%. This increase was mainly attributable to increased sponsorship revenue and further increases in OTT revenue lines which has a 12-month impact in 2023. 
The increase in direct costs reflected an investment in more rights and increased content costs supporting our content portfolio across the OTT infrastructure. 
Marketing and software costs increased reflecting our increase promotion of our channel offerings, particularly in OTT where 2023 had a 12-month impact. 
Overall, the group made a loss in the year of $8,264,483.  The group has commenced new initiatives, most notably a new Joint Venture with Netflix in its territories and this is expected to grow revenue substantially again in 2024 and return the group to profitability.

Financial key performance indicators
 
The key financial performance indicators of the group are subscriber numbers, turnover levels and EBITDA.

Principal risks and uncertainties
 
The directors consider that the principal risks and uncertainties facing the group is the increase in competition due to the highly competitive nature of this industry and the current economic climate.
Other risks are as follows:
• Market Demand and Evolution: A potential reduction in economic activity which may result in reduced consumer   spending and demand in the sector along with content being delivered via multiple methods.
• Economic Risk: The risk of increased interest rates, inflation and continuing austerity measures imposed by    overnment policies may have an adverse effect on the group’s market.
• Competition Risk: Risk posed by competitors in the group’s markets is managed through close attention to    customer service levels and pricing.
• Financial Risk: Key area results are monitored on an ongoing basis by both the company and wider group     management.
• Geographical Risk: Potential for conflict in the territories of broadcasting

Page 1

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Group
 
Under Section 172(1) of the Companies Act 2006, the Board of Directors have a duty to act in good faith and in a way that would be most likely to promote the success of the group for the benefit of its shareholders whilst having regard to matters set out in Section 172(1) (a-f) of the Act:
a. the likely consequences of any decision in the long term;
b. the interests of the group's employees;
c. the need to foster the group's business relationships with suppliers, customers and others;
d. the impact of the group's operations on the community and the environment;
e. the desirability of the group maintaining a reputation for high standards of business conduct; and
f. the need to act fairly as between members of the group.
The directors of the group, both individually and collectively, believe they have acted in good faith at all times during the year ended 31 December 2023 and are focused on promoting the success of the group for the benefit of all stakeholders. The directors consider the impact on the interests of the group’s stakeholders while discharging all of their duties.

Future Developments
 
The group plans to continue its present activities and current trading levels.

Post Balance Sheet Events

There have been no significant events affecting the group since the financial year-end.


This report was approved by the board and signed on its behalf.



Michael O’Rourke
Director

Dwyer McCaughley
Director


Date: 6 December 2024


Page 2

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Principal activity

The principal activity of the group is television broadcasting and the provision of television programme services in the Eurasian and Baltic, Ukrainian and Philippine regions.

There has been no significant change in these activities during the financial year ended 31 December 2023.    

Results and dividends

The loss for the year, after taxation and depreciation, amounted to $8,264,483 (2022 - $7,057,560).

The directors do not recommend payment of a dividend.

Directors

The directors who served during the year were:

Michael O’Rourke 
Dwyer McCaughley 
Giorgi Pruidze 

The secretary who served throughout the financial year was Michael O’Rourke.    
The directors had no direct beneficial interest in the shares of the company at the beginning or end of the financial year.    
There were no changes in shareholdings between 31 December 2023 and the date of signing the financial statements.    


Political contributions

The group did not make any disclosable political donations in the current financial year.

Engagement with employees

There are currently 6 staff employed by the group. Staff are kept informed about developments in the group and its activities as soon as practicable. Please refer to note 7 of these financial statements for further information.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post year end events

There have been no significant events affecting the group since the year end and the directors do not envisage any substantial changes to the nature of the business.

Page 3

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Auditors

The auditorsStrata Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 



Michael O’Rourke
Director
Dwyer McCaughley
Director


Date: 6 December 2024
Date: 6 December 2024
Page 4

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Group Strategic Report, Directors' Report and the consolidated financial statements, in accordance with applicable law.

Company law requires the directors to prepare consolidated financial statements for each financial year. Under that law they have elected to prepare the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.

Under company law the directors must not approve the consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing the consolidated financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;

assess the Group and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

Page 5

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EURASIAN BROADCASTING ENTERPRISE LIMITED
 

Opinion


We have audited the financial statements of Eurasian Broadcasting Enterprise Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Profit or Lossthe Consolidated Statement of Comprehensive Incomethe Consolidated Statement of Financial Position, the Company Statement of Financial Positionthe Consolidated Statement of Cash Flows, the Company Statement of Cash Flowsthe Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies set out on pages 22 - 36. The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.

In our opinion:

the financial statements give a true and fair view of the state of the Group's and the Parent Company's affairs as at 31 December 2023 and of the Group's loss for the year then ended;

the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the United Kingdomand

the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the Group's and the Parent Company's ability to continue to adopt the going concern basis of accounting included:


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 6

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EURASIAN BROADCASTING ENTERPRISE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report, other than the financial statements and our auditors' report thereon.  The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006


In our opinion, based on the work undertaken in the course of the audit: 

the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

the Parent Company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.


Responsibilities of directors

As explained more fully in the directors' responsibilities statement on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
 

Page 7

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EURASIAN BROADCASTING ENTERPRISE LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to completeness of income, potential dummy creditors and management override of journal adjustments, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to completeness of income, potential dummy creditors and management override of journal adjustments. Audit procedures performed included:
- all of the systems and information systems of the group were documented in full at the planning stage of the audit   with a specific focus on the sales and income aspects of the system.
- based on documentation of systems and information systems, walk through testing, control testing and detailed    initial analytical review, risk was formally assessed in relation to completeness of income.
- verification of costings and knowledge of client.
- review and assessment of significant journal entries during the year.
- discussions with Management. 
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to the events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.



As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Group's and the Parent Company's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group and the Parent Company's ability to continue as a going concern. If we conclude
Page 8

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EURASIAN BROADCASTING ENTERPRISE LIMITED (CONTINUED)


that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtains sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for the audit opinion.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.




 
 
Celine Donnelly (Senior Statutory Auditor)
  
for and on behalf of
Strata Audit
 
Statutory Audit Firm
  
3 Harmony Court
Harmony Row
Dublin 2
Ireland

6 December 2024
Page 9

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note
$
$

  

Revenue
 7 
32,119,245
21,337,376

Cost of sales
  
(24,717,160)
(14,994,886)

Gross profit
  
7,402,085
6,342,490

  

Administrative expenses
  
(15,120,999)
(11,733,809)

Loss from operations
  
(7,718,914)
(5,391,319)

  

Finance expense
 14 
(545,569)
(1,595,133)

Loss before tax
  
(8,264,483)
(6,986,452)

  

Tax expense
 15 
-
(71,108)

Loss for the year
  
(8,264,483)
(7,057,560)

The notes on pages 22 to 56 form part of these financial statements.

Page 10

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
$
$

Loss for the year
  
(8,264,483)
(7,057,560)

Other comprehensive income:

  

Exchange gains arising on translation on foreign operations
  
24,286
26,470

Total comprehensive income
  
(8,240,197)
(7,031,090)


The notes on pages 22 to 56 form part of these financial statements.

Page 11

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
REGISTERED NUMBER: 07801244

 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023


2023
2022
Note
$
$

Assets

Non-current assets
  

Tangible assets
 16 
62,485
80,042

Intangible assets
 17 
9,287,688
12,269,473

  
9,350,173
12,349,515

Current assets
  

Trade and other receivables
 19 
14,253,944
10,342,129

Cash and cash equivalents
  
942,182
2,648,454

  
15,196,126
12,990,583

  

Total assets

  

24,546,299
25,340,098

Liabilities

  

Current liabilities
  

Trade and other liabilities
 20 
50,904,495
45,863,228

Loans and borrowings
 21 
2,431,601
-

  
53,336,096
45,863,228

  

Total liabilities
  
53,336,096
45,863,228

  

  

Net liabilities
  
(28,789,797)
(20,523,130)


Issued capital and reserves attributable to owners of the parent
 24 

Share capital
 23 
463
463

Share premium reserve
  
1,202,021
1,202,021

Foreign exchange reserve
  
24,286
26,470

Retained earnings
  
(30,016,567)
(21,752,084)

  
(28,789,797)
(20,523,130)

  

TOTAL EQUITY
  
(28,789,797)
(20,523,130)

The financial statements on pages 10 to 56 were approved and authorised for issue by the board of directors on 6 December 2024 and were signed on its behalf by:

Michael O’Rourke
Dwyer McCaughley
Director
Director

The notes on pages 22 to 56 form part of these financial statements.
Page 12

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
REGISTERED NUMBER: 07801244

 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023



Page 13

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
REGISTERED NUMBER: 07801244

 
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023


2023
2022
Note
$
$

Assets

Non-current assets
  

Tangible assets
 16 
34,071
25,000

Intangible assets
 17 
553,984
624,534

Financial assets
 18 
16,391,188
16,391,188

  
16,979,243
17,040,722

Current assets
  

Trade and other receivables
 19 
10,810,253
7,871,661

Cash and cash equivalents
  
813,278
2,046,267

  
11,623,531
9,917,928

  

Total assets

  

28,602,774
26,958,650

Liabilities

Current liabilities
  

Trade and other liabilities
 20 
48,247,808
44,730,653

Loans and borrowings
 21 
2,431,601
-

  
50,679,409
44,730,653

  

Total liabilities
  
50,679,409
44,730,653

  

  

Net liabilities
  
(22,076,635)
(17,772,003)


Issued capital and reserves attributable to owners of the parent
 24 

Share capital
 23 
463
463

Share premium reserve
  
1,202,021
1,202,021

Retained earnings
  
(23,279,119)
(18,974,487)

TOTAL EQUITY
  
(22,076,635)
(17,772,003)

The Company's loss for the year was $4,304,618 (2022 - $4,606,462).
The company has elected to take the exemption under section 408 of the Companies Act 2006 not to present the Company Profit & Loss Account.

The financial statements on pages 10 to 56 were approved and authorised for issue by the board of directors on 6 December 2024 and were signed on its behalf by:

Michael O’Rourke
Dwyer McCaughley
Director
Director

The notes on pages 22 to 56 form part of these financial statements.
Page 14

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
REGISTERED NUMBER: 07801244

 
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023


Page 15

 
EURASIAN BROADCASTING ENTERPRISE LIMITED


 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Share capital
Share premium
Foreign exchange reserve
Retained earnings
Total attributable to equity holders of parent
Total equity


$
$
$
$
$
$

At 1 January 2022
463
1,202,021
(338)
(14,694,524)
(13,492,378)
(13,492,378)

Comprehensive income for the year





Loss for the year
-
-
-
(7,057,560)
(7,057,560)
(7,057,560)

Total comprehensive income for the year
-
-
-
(7,057,560)
(7,057,560)
(7,057,560)

Contributions by and distributions to owners







FX movements
-
-
26,808
-
26,808
26,808

Total contributions by and distributions to owners
-
-
26,808
-
26,808
26,808

At 31 December 2022
463
1,202,021
26,470
(21,752,084)
(20,523,130)
(20,523,130)

At 1 January 2023
463
1,202,021
26,470
(21,752,084)
(20,523,130)
(20,523,130)

Comprehensive income for the year





Loss for the year
-
-
-
(8,264,483)
(8,264,483)
(8,264,483)

Total comprehensive income for the year
-
-
-
(8,264,483)
(8,264,483)
(8,264,483)

Contributions by and distributions to owners







FX movements
-
-
(2,184)
-
(2,184)
(2,184)

Total contributions by and distributions to owners
-
-
(2,184)
-
(2,184)
(2,184)

At 31 December 2023
463
1,202,021
24,286
(30,016,567)
(28,789,797)
(28,789,797)

The notes on pages 22 to 56 form part of these financial statements.

Page 16

 
EURASIAN BROADCASTING ENTERPRISE LIMITED


 
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Share capital
Share premium
Retained earnings
Total equity


$
$
$
$

At 1 January 2022
463
1,202,021
(14,368,025)
(13,165,541)

Comprehensive income for the year




Loss for the year
-
-
(4,606,462)
(4,606,462)

Total comprehensive income for the year
-
-
(4,606,462)
(4,606,462)

Contributions by and distributions to owners





At 31 December 2022
463
1,202,021
(18,974,487)
(17,772,003)

At 1 January 2023
463
1,202,021
(18,974,501)
(17,772,017)

Comprehensive income for the year




Loss for the year
-
-
(4,304,618)
(4,304,618)

Total comprehensive income for the year
-
-
(4,304,618)
(4,304,618)

Contributions by and distributions to owners





At 31 December 2023
463
1,202,021
(23,279,119)
(22,076,635)

The notes on pages 22 to 56 form part of these financial statements.

Page 17

 
EURASIAN BROADCASTING ENTERPRISE LIMITED


 
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note
$
$

Cash flows from operating activities
  

Loss for the year
  
(8,264,483)
(7,057,560)

Adjustments for
  

Depreciation of property, plant and equipment
 16 
55,034
58,386

Amortisation of intangible fixed assets
 17 
2,981,787
2,971,368

  
(5,227,662)
(4,027,806)

Movements in working capital:
  

Increase in trade and other receivables
  
(3,277,973)
(3,411,679)

Increase in trade and other payables
  
5,049,913
30,388,670

Cash generated from operations
  
(3,455,722)
22,949,185

  

Net cash (used in)/from operating activities

  
(3,455,722)
22,949,185

Cash flows from investing activities
  

Purchases of property, plant and equipment
  
(37,476)
(217,280)

Payments to acquire financial assets
  
-
(14,555,369)

Foreign currency exchange
  
(2,186)
26,470

Net cash used in investing activities

  
(39,662)
(14,746,179)

Cash flows from financing activities
  

Proceeds from bank borrowings
  
2,431,601
-

Advances from/(to) related parties
  
(642,489)
(24,141,674)

Net cash from/(used in) financing activities
  
1,789,112
(24,141,674)

Net decrease in cash and cash equivalents
  
(1,706,272)
(15,938,668)

  

Cash and cash equivalents at the beginning of year
  
2,648,454
18,587,122

Cash and cash equivalents at the end of the year
  
942,182
2,648,454

The notes on pages 22 to 56 form part of these financial statements.

Page 18

 
EURASIAN BROADCASTING ENTERPRISE LIMITED


 
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note
$
$

Cash flows from operating activities
  

Loss for the year
  
(4,304,618)
(4,606,462)

Adjustments for
  

Depreciation of property, plant and equipment
 16 
28,405
28,417

Impairment losses on intangible assets
 17 
70,550
60,133

Finance expense
 14 
-
1,593,029

  
(4,205,663)
(2,924,883)

Movements in working capital:
  

Increase in trade and other receivables
  
(2,145,176)
(1,593,862)

Increase in trade and other payables
  
4,373,281
29,535,379

Cash generated from operations
  
(1,977,558)
25,016,634

  

Net cash (used in)/from operating activities

  
(1,977,558)
25,016,634

Cash flows from investing activities
  

Purchases of tangible and intangible assets
  
(37,476)
(205,500)

Payments to acquire financial assets
  
-
(16,391,063)

Net cash used in investing activities

  
(37,476)
(16,596,563)

Cash flows from financing activities
  

Proceeds from bank borrowings
  
2,431,601
-

Advances to subsidiaries and connected parties
  
(597,364)
(227,921)

Movements in funding from subsidiaries and connected parties
  
(4,852,741)
(23,430,747)

Advances from/(to) related parties
 14 
3,800,549
(855,010)

Net cash from/(used in) financing activities
  
782,045
(24,513,678)

Net decrease in cash and cash equivalents
  
(1,232,989)
(16,093,607)

  

Cash and cash equivalents at the beginning of year
  
2,046,267
18,139,874

Cash and cash equivalents at the end of the year
  
813,278
2,046,267

The notes on pages 22 to 56 form part of these financial statements.

Page 19

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Eurasian Broadcasting Enterprise Limited is a company limited by shares incorporated in the United Kingdom. The registered number of the company is 07801244. The registered office of the company is C/O Capepoint Company Limited, 1 Princeton Mews, 167-169 London Road, Kingston Upon Thames, Surrey, United Kingdom which is also the principal place of business of the company. The principal activity of the company is television broadcasting and the provision of television programme services in the Eurasian and Baltic regions.  


2.


Basis of preparation

The Group's consolidated and the Company's individual financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on 06 December 2024.

Details of the Group's accounting policies, including changes during the year, are included in note 3.

The Company has taken advantage of the exemption available under section 408 of the Companies Act 2006 and elected not to present its own Profit and Loss Account or Statement of Comprehensive Income in these financial statements.

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Group accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The areas where judgments and estimates have been made in preparing the consolidated financial statements and their effects are disclosed in note 6.


2.1 Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items, which are measured on an alternative basis on each reporting date.


Items



2.2 Changes in accounting policies

i) New standards, interpretations and amendments effective from 1 January 2023

Amendments to IAS 12 Income taxes: International Tax Reform – Pillar Two Model Rules (issued on 23 May 2023)

The amendments had no impact on the company’s financial statements.

Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information (issued on 9 December 2021)

The amendments had no impact on the company’s financial statements.

Page 20

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Basis of preparation (continued)


2.2 Changes in accounting policies (continued)


i) New standards, interpretations and amendments effective from 1 January 2023 (continued)

Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (issued on 7 May 2021)

The amendments had no impact on the company’s financial statements.

Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (issued on 12 February 2021)

The amendments had no impact on the company’s financial statements.

Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (issued on 12 February 2021)

The standard and the amendments had no impact on the company’s financial statements.

IFRS 17 Insurance Contracts (issued on 18 May 2017); including Amendments to IFRS 17 (issued on 25 June 2020)

The amendments had no impact on the company’s financial statements.

ii) 

New standards, interpretations and amendments not yet effective

The following standards and interpretations to published standards are not yet effective:


New standard or interpretation

EU Endorsement status

Mandatory effective date (period beginning)


Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback
 (issued on 22 September 2022)
1 January 2024

Amendments to IAS 1 Presentation of Financial Statements
(issued on 31 October 2022)
1 January 2024

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements
(issued on 25 May 2023)
1 January 2024

IFRS 18 Presentation and Disclosure in Financial Statements
(issued on 9 April 2024)
1 January 2027

IFRS 19 Subsidiaries without Public Accountability: Disclosures 2
(issued on 9 May 2024)
1 January 2027

Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
(issued on 15 August 2023)
1 January 2025

Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)
(issued on 30 May 2024)
1 January 2026

Page 21

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Basis of preparation (continued)


ii) New standards, interpretations and amendments not yet effective (continued)


The directors anticipate that the adoption of these Standards in future periods may have an impact on the results and net assets of the Company, however, it is too early to quantify this.

The directors anticipate that the adoption of other Standards and interpretations that are not yet effective in future periods will only have an impact on the presentation in the financial statements of the Company.


3.Accounting policies

 
3.1

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:
the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
potential voting rights held by the Company, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at this time that decisions need to be made, including voting patterns at previous shareholders' meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Page 22

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)

 
3.2

Foreign currency

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;
exchange differences on transactions entered into in order to hedge certain foreign currency risks (see  for hedging accounting policies); and
exchange differences on monetary items receivable from or payable to foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.

For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated into US$ Dollar using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).

On the disposal of a foreign operation (i.e. a disposal of the Group's entire interest in a foreign operation, a disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognised in profit or loss. For all other partial disposals (i.e. partial disposals of associates or joint arrangements that do not result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss.

Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Exchange differences arising are recognised in other comprehensive income.

Page 23

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)

 
3.3

Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

The Group's policy for goodwill arising on the acquisition of an associate and a joint venture is described at note 3.4.

Page 24

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)

 
3.4

Investments in associates and joint ventures

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate or a joint venture is initially recognised in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group's share of the profit or loss and other comprehensive income of the associate or joint venture. When the Group's share of losses of an associate or a joint venture exceeds the Group's interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group's net investment in the associate or joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.

An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group's share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in which the investment is acquired.

The requirements of IAS 39 are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group's investment in an associate or joint venture. When necessary, the entire carrying amount of the investment (including goodwill) is tested fir impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or joint venture, or when the investment is classified as held for sale. When the Group retains an interest in the former associate or joint venture and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the associate or joint venture at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate or joint venture is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition, the Group accounts for all amounts previously recognised in other comprehensive income in relation to that associate or joint venture on the same basis as would be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognised in other comprehensive income by that associate or joint venture would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassified the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued.

The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an associate.There is no remeasurement to fair value
Page 25

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)


3.4
Investments in associates and joint ventures (continued)

upon such changes in ownership interests.

When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in the other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities.

When a group entity transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with the associate or joint ventures are recognised in the Group's consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Group.

 
3.5

Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Group recognises revenue when it transfers control over a product or service to a customer.

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

 
3.6

Taxation

The company is managed and controlled in the United Kingdom and, consequently, is tax resident in the United Kingdom. 

Income tax expense represents the sum of the tax currently payable and deferred tax.




(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the consolidated Consolidated Profit and Loss Account because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Page 26

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)


3.6
Taxation (continued)


(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Page 27

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)

 
3.7

Intangible assets


Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over the useful economic life of 10 years and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Goodwill on consolidation is amortised over the useful life of 5 years. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit or loss in the expense category that is consistent with the function of the intangible assets.
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.
Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units ('CGUs'). Goodwill, if any, is allocated on initial recognition to each of the Group's CGUs that are expected to benefit from a business combination that gives rise to the goodwill. 
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation
An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss.

Page 28

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)

 
3.8

Tangible assets

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:

Fixtures, fittings & equipment
20%
straight line
Office furniture
20%
straight line
Computer software
33%
straight line

The charge in respect of periodic depreciation is calculated after establishing an estimate of the asset’s useful economic life and the expected residual value at the end of its useful economic life.
The useful economic lives of group assets are determined by management at the time the assets are acquired and reviewed annually for appropriateness. These useful economic lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their useful economic life, such as changes in technology or the location of the asset.

 
3.9

Financial instruments

Financial assets and financial liabilities are recognised when a Group entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

 
3.10

Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Page 29

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)


3.10
Financial assets (continued)


Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortised cost:

the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income (FVOCI):

the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and

the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

By default, all other financial assets are subsequently measured at fair value through profit or loss (FVTPL).

Despite the aforegoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset:

the Group may irrevocably elect to present subsequent changes in fair value of an equity instrument in other comprehensive income if certain criteria are met (see  Equity instruments classified as at FVOCI); and

the Group may irrevocably designate a debt investment that meets the amortised cost or FVOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch (see  Financial assets at FVTPL).

Page 30

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)


3.10
Financial assets (continued)


Amortised cost and effective interest method

The effective interest method is a method for calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period.

For financial instruments other than purchased or originated credit-impaired financial assets, the effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) excluding expected credit losses, through the expected life of the debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial recognition. For purchased and originated credit-impaired financial assets, a credit-adjusted effective interest rate is calculated by discounting the estimated future cash flows, including expected credit losses, to the amortised cost of the debt instrument on initial recognition.

The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. On the other hand, the gross carrying amount of a financial asset is the amortised costs of a financial asset before adjusting for any loss allowance.

Interest income is recognised using the effective interest method for debt instruments measured subsequently at amortised cost and at FVOCI. For financial instruments other than purchased or originated credit-impaired financial assets, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for financial assets that have subsequently become credit-impaired. For financial assets that have subsequently become credit-impaired, interest income is recognised by applying the effective interest rate to the amortised cost of the financial asset. If, in subsequent reporting periods, the credit risk on the credit-impaired financial instrument improves so that the financial asset is no longer credit-impaired, interest income is recognised by the applying the effective interest rate to the gross carrying amount of the financial asset.

For purchased and originated credit-impaired financial assets, the Group recognises interest income by applying the credit-adjusted effective interest rate to the amortised cost of the financial asset from initial recognition. The calculation does not revert to the gross basis even if the credit risk of the financial asset subsequently improves so that the financial asset is no longer credit-impaired.

Interest income is recognised in profit or loss and is included in the 'finance income' line item.


Debt instruments classified as at FVOCI

Listed redeemable notes held by the Group are classified as at FVOCI. Fair value is determined in the manner described in note . The listed redeemable notes are initially measured at fair value plus transaction costs. Subsequently, changes in the carrying amount of these listed redeemable notes as a result of foreign exchange gains and losses, and interest income calculated using the effective interest method (see  Amortised cost and effective interest method) are recognised in profit or loss. The amounts that are recognised in profit or loss are the same as the amounts that would have been recognised in profit or loss if these listed redeemable notes had been measured at amortised cost. All other changes in the carrying amount of these listed redeemable notes are recognised in other comprehensive income and accumulated under the heading of investment revaluation reserve. When these listed redeemable notes are derecognised, the cumulative gains or losses previously recognised in other comprehensive income are reclassified to profit or loss.

Page 31

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)


3.10
Financial assets (continued)


Equity instruments classified as at FVOCI

On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments as at FVOCI. Designation at FVOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognised by an acquirer in a business combination to which IFRS 3 applies.

A financial asset is held for trading if:

it has been acquired principally for the purpose of selling it in the near term; or

on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has evidence of a recent actual pattern of short-term profit-taking; or

it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

Investments in equity instruments at FVOCI are initially measured at fair value plus transaction costs. Subsequently, they are measure at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the investments revaluation reserve. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings.

The Group has designated all investments in equity instruments that are not held for trading as at FVOCI on initial application of IFRS 9 (see note ).

Dividends on these investments in equity instruments are recognised in profit or loss when the Group's right to receive the dividends is established in accordance with IFRS 15 Revenue from Contracts with Customers, unless the dividends clearly represent a recovery of part of the cost of the investment. Dividends are included in the 'finance income' line item in profit or loss.


Financial assets at FVTPL

Financial assets that do not meet the criteria for being measured at amortised cost or FVOCI are measured at FVTPL. Specifically:

investments in equity instruments are classified as at FVTPL, unless the Group designates an equity instrument that is neither held for trading nor a contingent consideration arising from a business combination as at FVOCI on initial recognition (see  Equity instruments classified as at FVOCI).

debt instruments that do not meet the amortised cost criteria or the FVOCI criteria (see  Amortised cost and effective interest method and  Debt instruments classified as at FVOCI) are classified as at FVTPL. In addition, debt instruments that meet either the amortised cost criteria or the FVOCI criteria may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognising the gains and losses on them on different bases.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognised in profit or loss to the extent they are not part of a designated hedging relationship (see note ). The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset and is included in the 'fair value gains/losses' line item. Fair value is determined in the manner described in note .

Page 32

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)


3.10
Financial assets (continued)


Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. In addition, on derecognition of an investment in a debt instrument classified as at FVOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. In contrast, on derecognition of an investment in an equity instrument which the Group has elected on initial recognition to measure at FVOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.

 
3.11

Financial liabilities and equity instruments


Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, financial guarantee contracts issued by the Group, and commitments issued by the Group to provide a loan at below-market interest rate are measured in accordance with the specific accounting policies set out below.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is (i) contingent consideration of an acquirer in a business combination to which IFRS 3 applies, (ii) held for trading, or (iii) it is designated as at FVTPL.

A financial liability is classified as held for trading if:
it has been incurred principally for the purpose of repurchasing it in the near term;
on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or
it is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument.

A financial liability other than a financial liability held for trading or contingent consideration of an acquirer in a business combination may be designated as at FVTPL upon initial recognition if:
such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or
the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or
it forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire
Page 33

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)


3.11
Financial liabilities and equity instruments (continued)


 Financial liabilities (continued)

combined contract to be designated as at FVTPL.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss to the extent that they are not part of a designated hedging relationship (see note ). The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘fair value gains/losses' line item.

However, for financial liabilities that are designated as at FVTPL, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognised in other comprehensive income, unless the recognition of the effects of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. The remaining amount of change in the fair value of the liability is recognised in profit or loss. Changes in fair value attributable to a financial liability's credit risk that are recognised in other comprehensive income are not subsequently reclassified to profit or loss; instead, they are transferred to retained earnings upon derecognition of the financial liability.

Gains or losses on financial guarantee contracts and loan commitments issued by the Group that are designated by the Group as at FVTPL are recognised in profit or loss.

Fair value is determined in the manner described in note.

Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held for trading, or (iii) designated as at FVTPL, are subsequently measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.


3.12

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

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EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)


3.13

Trade receivables

Trade receivables are recognised initially at transaction price and subsequently less any provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. All movements in the level of the provision required are recognised in the Statement of Profit or Loss.


3.14

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments readily convertible to cash, and bank overdrafts. In the balance sheet bank overdrafts are shown within creditors.  


3.15

Trade and other payables

These amounts represent liabilities for goods and services provided to the group prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30-60 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method


3.16

Related parties

The group discloses transactions with related parties which are not wholly owned within the group. It does not disclose transactions with members of the group which are wholly owned.


3.17

Provisions

Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it is probable that the group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material) using a pre-tax rate.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Page 35

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Accounting policies (continued)

 
3.18

Dividends

Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders at the AGM.

Dividends on preference shares, which are classified as a financial liability, are treated as finance costs and are recognised on an accruals basis when an obligation exists at the reporting date.


3.19

Share capital

Ordinary shares are classified as equity. Mandatorily redeemable preference shares are classified as liabilities.   
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.


4.


Financial risk management

Financial risk factors
The group has a clearly defined Financial Risk Management Programme which is approved by the Board of Directors and is subject to regular monitoring and review. The group’s activities expose it to a variety of financial risks: credit risk and liquidity risk. Responsibility for managing these risks rests with the Board of Directors. It is, and has been throughout the period under review, the group’s policy not to trade in financial instruments. 
Financial risk management objectives
The principal objectives of the Group’s Financial Risk Management Programme are further discussed across the following categories:

Foreign exchange rate risk management
The group is exposed to transactional foreign currency risk on trading activities conducted in currencies other than their functional currency. The group policy is to manage foreign currency exposures commercially and through netting of exposures wherever possible. 
Interest rate risk management 
The group is exposed to interest rate risk as the group holds borrowings on both a fixed and floating basis.  This exposure to interest rate risk is managed by optimising the mix of fixed and floating rate borrowings and by using interest rate swaps, cross currency swaps and forward rate agreements to hedge these exposures, in accordance with group policy as approved by the Board of Directors. The group reviews the mix of fixed and floating rate borrowings on an ongoing basis and adjusts where necessary to comply with group policy. 
Liquidity risk management 
Liquidity risk considers the risk that the group could encounter difficulties in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.  The objective of liquidity management is to ensure the availability of sufficient funds to meet the group’s requirements and to repay maturing debt. This objective is met by monitoring and controlling potential cash flows and maintaining an appropriate buffer of readily realisable assets and standby credit lines.   
 
Page 36

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Credit risk
Credit risks are mainly related to counterparty risks associated with trade and other debtors, prepayments and amounts owed by related companies.
The group is exposed to credit risk relating to its cash and cash equivalents. The group places its cash with highly rated financial institutions. The group’s policy is designed to limit exposure with any one institution and to invest its excess cash in low-risk investment accounts. The group has not experienced any losses on such accounts.


5.


Functional and presentation currency

These consolidated financial statements are presented in US dollars, which is the Company's functional currency. All amounts have been rounded to the nearest US dollar, unless otherwise indicated.


6.


Critical accounting estimates and judgments

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the group’s accounting policies. 
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Income tax charge and deferred tax assets and liabilities
Significant judgement and a high degree of estimation is required in determining the income tax charge as the group operates in many jurisdictions and the tax treatment of many items is uncertain with tax legislation being open to different interpretation.  Furthermore, the group can also be subject to uncertainties, including tax audits in any of the jurisdictions in which it operates, which by their nature are often complex and can require several years to conclude.
The group considers these uncertain tax positions in the recognition of its income tax/deferred tax assets or liabilities.  In line with its accounting policy, the group bases its assessment on the probability of a tax authority accepting its general treatment having regard to all information available on the tax matter and when it is not probable reflects the uncertainty in income tax/deferred tax assets or liabilities.
When applying its accounting policy at the year end the group generally considered each uncertain tax treatment separately and reflected the effect of the uncertainty in the income tax/deferred tax assets or liabilities using an expected value approach as this better predicts the resolution of the uncertainty. Such estimates are determined based on management judgement, interpretation of the relevant tax laws, correspondence with the relevant tax authorities and external tax advisors and past practices of:
Establishing lives for amortisation of intangible assets 
The group estimates the useful life of the acquired assets to be at least 10 years based on the directors’ best estimate.    
The group estimates the useful life of goodwill on consolidation to be at least 5 years based on the directors’ best estimate.    
Establishing useful economic lives for depreciation purposes of tangible fixed assets
The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The directors regularly review these asset useful economic lives and change them as
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EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.Critical accounting estimates and judgments (continued)


 Judgment (continued)

necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful economic lives is included in the accounting policies.
Providing for expected credit losses
The group makes an estimate of the recoverable value of trade and other debtors. The group uses estimates based on historical experience in determining the level of debts, which the group believes, will not be collected. These estimates include such factors as the current credit rating of the debtor, the ageing profile of debtors and historical experience. The group will calibrate these estimates to adjust the historical credit loss experience with forward-looking information. For instance, if forecast economic conditions (i.e., gross domestic product) are expected to deteriorate over the next year which can lead to an increased number of defaults, the historical default rates are adjusted. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.
Any significant reduction in the level of customers that default on payments or other significant improvements that resulted in a reduction in the level of bad debt provision would have a positive impact on the operating results.
The assessment of the correlation between historical observed default rates, forecast economic conditions and Expected Credit Losses (ECLs) is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The group’s historical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual default in the future. The information about the ECLs on the group’s trade receivables is disclosed in Note 19.


7.


Revenue


The following is an analysis of the Group's revenue for the year from continuing operations:


2023
2022
$
$


Provision of services
32,119,245
21,337,376

32,119,245
21,337,376


Analysis of revenue by country of destination:

2023
2022
$
$


Eurasian, Baltic, Ukrainian and Philippine regions
32,119,245
21,337,376

32,119,245
21,337,376

Page 38

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Segment information

8.1 Products and services from which reportable segments derive their revenues

The Group's reportable segments under IFRS 8 are as follows:


Name 1
Over-The-Top Content


Name 2

Basic IPTV


Name 3

Advertising and sponsorship


Name 4

Sublicencing

ole7ce6.png

Page 39

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.Segment information (continued)


8.2 Segment assets and liabilities

2023
2022
$
$
Segment assets


Name 1

Over-The-Top Content
6,705,321
3,965,225

Name 2

Basic IPTV
4,852,016
4,051,760

Name 3

Advertising and sponsorship
1,589,256
1,693,831

Name 4

Sublicencing
913,083
1,021,350

Total segment assets
14,059,676
10,732,166


Unallocated
10,486,622
14,607,932

Consolidated total assets
24,546,298
25,340,098

Unallocated assets are assets that are attributable to each of the business segments.

2023
2022
$
$
Segment liabilities


Name 1

Over-The-Top Content
7,534,743
4,419,968

Name 2

Basic IPTV
10,018,472
6,930,252

Name 3

Advertising and sponsorship
4,819,911
1,613,452

Name 4

Sublicencing
26,422,603
26,263,612

Total segment liabilities
48,795,729
39,227,284


Unallocated
4,540,366
6,635,944

Consolidated total liabilities
53,336,095
45,863,228

Unallocated liabilities are assets that are attributable to each of the business segments.

Page 40

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.Segment information (continued)


8.3 Other segment information


Depreciation and amortisation

Additions to non-current assets

2023
2022
2023
2022
$
$
$
$

Name 1

Over-The-Top Content
70,550
60,133
-
217,280

Name 2

Basic IPTV
55,034
58,386
37,476
-

Name 3

Advertising and sponsorship
-
-
-
-

Name 4

Sublicencing
-
-
-
-

Unallocated
2,911,234
2,911,235
-
14,556,174

3,036,818
3,029,754
37,476
14,773,454

No impairment losses have been recognised in respect of property, plant and equipment.


8.4 Geographical information

The group derives its revenue from the transfer of services over time and at a point in time in the Eurasian, Baltic, Ukrainian and Philippines Regions.







Page 41

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Expenses by nature

ole259f.png



Operating costs:


Page 42

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
$
$

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
63,484
11,680


11.


Employee benefit expenses

Group


2023
2022
$
$

Employee benefit expenses (including directors) comprise:

Wages and salaries
337,395
326,983

National insurance
37,951
36,559

Defined contribution pension cost
100,049
41,978

475,395
405,520

Key management personnel compensation

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the directors of the Company listed on page 4, and the Financial Controller of the Company.


2023
2022
$
$


Salary
137,470
132,631

137,470
132,631

The monthly average number of persons, including the directors, employed by the Group during the year was as follows:


2023
2022
No.
No.

Administration
3
3

3
3







Page 43

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Directors' remuneration

2023
2022
$
$


Directors' emoluments
137,470
132,631

137,470
132,631



13.


Pension costs

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Pension costs amounted to $100,049 (2022 - $41,978).


14.


Finance income and expense

Recognised in profit or loss


2023
2022
$
$
Finance income



Interest income
-
-

Total finance income

-
-

Finance expense

Bank interest payable
177,670
360

Interest payable to connected parties
367,899
1,594,773

Total finance expense
545,569
1,595,133


Page 44

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tax expense

15.1 Income tax recognised in profit or loss



2023
2022
$
$

Current tax

Current tax on profits for the year
-
71,108

Total current tax
-
71,108


Deferred tax expense

Deferred tax
-
-

Total deferred tax
-
-


-
71,108


Total tax expense

Tax expense excluding tax on sale of discontinued operation and share of tax of equity accounted associates and joint ventures
-
71,108

-
71,108

The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows:


2023
2022
$
$


Loss for the year
(8,264,483)
(7,057,560)

Income tax expense
-
71,108

Loss before income taxes
(8,264,483)
(6,986,452)


Expenses not deductible for tax purposes
69,901
303,022

Capital allowances for the year in excess of depreciation
380,318
379,580

Tax losses carried forward
1,811,599
561,233

Tax calculated at UK and Irish tax rates
(2,261,818)
(1,172,727)

Total tax expense
-
71,108

The tax on the group's profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the group as follows:
The weighted average applicable tax rate was 19% and 12.5% (2022: 19% and 12.5%).

Changes in tax rates and factors affecting the future tax charges

There were no factors that may affect future tax charges.

Page 45

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.Tax expense (continued)


15.1 Income tax recognised in profit or loss (continued)

There is no income tax recognised directly in equity or other comprehensive income.


16.


Property, plant and equipment


Group





Fixtures, fittings and equipment
Computer software
Total

$
$
$



Cost or valuation





At 1 January 2022
301,291
212
301,503


Additions
11,780
-
11,780



At 31 December 2022
313,071
212
313,283


Additions
11,780
37,476
49,256



At 31 December 2023
324,851
37,688
362,539


Fixtures, fittings and equipment
Computer software
Total

$
$
$



Accumulated depreciation and impairment





At 1 January 2022
174,643
212
174,855


Charge owned for the year
58,386
-
58,386



At 31 December 2022
233,029
212
233,241


Charge owned for the year
59,316
7,497
66,813



At 31 December 2023
292,345
7,709
300,054



Net book value


At 31 December 2022
80,042
-
80,042


At 31 December 2023
32,506
29,979
62,485

Page 46

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Company





Fixtures, fittings and equipment
Computer software
Total

$
$
$



Cost or valuation





At 1 January 2022
163,183
212
163,395



At 31 December 2022
163,183
212
163,395


Additions
-
37,476
37,476



At 31 December 2023
163,183
37,688
200,871


Fixtures, fittings and equipment
Computer software
Total

$
$
$



Accumulated depreciation and impairment





At 1 January 2022
109,766
212
109,978


Charge owned for the year
28,417
-
28,417



At 31 December 2022
138,183
212
138,395


Charge owned for the year
20,908
7,497
28,405



At 31 December 2023
159,091
7,709
166,800



Net book value


At 31 December 2022
25,000
-
25,000


At 31 December 2023
4,092
29,979
34,071

Page 47

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Intangible assets

Group





Goodwill
Acquired technology
Other Intangibles
Total

$
$
$
$



Cost






At 1 January 2022
14,556,174
500,000
-
15,056,174


Additions - external
-
125,000
80,500
205,500



At 31 December 2022
14,556,174
625,000
80,500
15,261,674



At 31 December 2023
14,556,174
625,000
80,500
15,261,674


Goodwill
Acquired technology
Other Intangibles
Total

$
$
$
$



Accumulated amortisation and impairment






At 1 January 2022
-
20,833
-
20,833


Charge for the year - owned
2,911,235
52,083
8,050
2,971,368



At 31 December 2022
2,911,235
72,916
8,050
2,992,201


Charge for the year - owned
2,911,235
62,500
8,050
2,981,785


At 31 December 2023
5,822,470
135,416
16,100
5,973,986



Net book value


At 1 January 2022
14,556,174
479,167
-
15,035,341


At 31 December 2022
11,644,939
552,084
72,450
12,269,473


At 31 December 2023
8,733,704
489,584
64,400
9,287,688

Company





Acquired technology
Other Intangibles
Total

$
$
$



Cost





At 1 January 2022
500,000
-
500,000


Additions - external
125,000
80,500
205,500



At 31 December 2022
625,000
80,500
705,500



At 31 December 2023
625,000
80,500
705,500

Page 48

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.Intangible assets (continued)


Acquired technology
Acquired technology
Total

$
$
$



Accumulated amortisation and impairment





At 1 January 2022
20,833
-
20,833


Charge for the year - owned
52,083
8,050
60,133



At 31 December 2022
72,916
8,050
80,966


Charge for the year - owned
62,500
8,050
70,550



At 31 December 2023
135,416
16,100
151,516



Net book value


At 1 January 2022
479,167
-
479,167


At 31 December 2022
552,084
72,450
624,534


At 31 December 2023
489,584
64,400
553,984

Amortisation expenses are included in administrative expenses.    
The directors have considered the carrying value of intangible assets at the year end in the context of impairment and have concluded that no impairment is required. The remaining amortisation period of acquired technology is 8 years and 10 months and of other intangibles is 8 years and 3 years for Goodwill.


18.

Financial assets


Group

2023
2022
$
$

Investment in joint ventures-additions
125
-

Investment in joint ventures-impairment chg
(125)
-

Net book value at 31 December 2023
-
-

Page 49

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Company

2023
2022
$
$

Investments in subsidiary companies
16,391,188
16,391,188

16,391,188
16,391,188

The company’s principal subsidiaries at 31 December 2023 are set out below. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the company, and the proportion of ownership interests held equals the voting rights held by the company. The shares in Philippines Setanta Sports (Ire) Limited are held indirectly. The country of incorporation or registration is also their principal place of business.   

ole5a39.png


19.


Trade and other receivables



Group

2023
2022
$
$


Trade receivables
2,951,561
2,963,917

Receivables from connected parties
836,987
203,145

Prepayments and accrued income
10,265,508
6,843,253

Tax recoverable
197,880
329,873

Other receivables
2,008
1,941

Total trade and other receivables
14,253,944
10,342,129

Page 50

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.Trade and other receivables (continued)

Trade debtors are amounts due from customers for services performed in the ordinary course of business.  They are generally due for settlement within 30-60 days and are therefore all classified as current.  Trade debtors are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing components, in which case they are recognised at fair value. The group holds the trade debtors with the objective of collecting the contractual cash flows, and so it measures them subsequently at amortised cost using the effective interest method. 
Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.  
Before accepting any new customer, the group uses a credit scoring system to assess the potential customer’s credit quality and defines credit limits by customer.  These credit limits are reviewed regularly throughout the financial year. The group does not typically require collateral in respect of trade receivables.
Trade debtors are inclusive of a bad debts provision of $502,535 (2022: $511,592)


Company

2023
2022
$
$


Trade receivables
2,949,617
1,520,710

Receivables from group companies
362,926
402,529

Receivables from connected parties
836,987
200,020

Prepayments and accrued income
6,464,672
5,516,977

Tax recoverable
196,051
231,425

Total trade and other receivables
10,810,253
7,871,661

Trade debtors are inclusive of a bad debts provision of $502,535 (2022: $502,535)
Amounts due from group undertakings and connected parties are interest free and repayable on demand.    

Page 51

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Trade and other payables



Group

2023
2022
$
$


Trade payables
7,213,648
7,556,025

Payables to participating interests
1,535,739
5,344,796

Payables to related parties
4,506,917
705,153

Accruals
4,445,981
1,981,536

Other payables - tax and social security payments
308,461
4,508

Deferred income
32,893,749
30,271,210

Total trade and other payables
50,904,495
45,863,228

Trade payables are unsecured and are usually paid within 30-60 days of recognition. The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature.  


Company

2023
2022
$
$


Trade payables
6,709,735
7,211,787

Payables to group undertakings
205,380
1,249,064

Payables to participating interests
1,535,739
5,344,796

Other payables
4,505,618
705,069

Accruals
3,707,919
1,647,985

Other payables - tax and social security payments
303,428
-

Deferred income
31,279,989
28,571,952

Total trade and other payables
48,247,808
44,730,653

Amounts owing to group undertakings, participating interests, connected parties and related parties are interest free and repayable on demand.     

Page 52

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Loans and borrowings


Group

2023
2022
$
$


Current

Bank loans
2,431,601
-


Company

2023
2022
$
$


Current

Bank loans - secured
2,431,601
-


22.


Taxation and Social welfare

Group
Group
Company
Company
2023
2022
2023
2022
$
$
$
$

Trade and other receivables

VAT repayable
197,880
234,462
196,051
231,425

Withholding Tax
-
95,411
-
-

197,880
329,873
196,051
231,425

Trade and other payables

Foreign VAT payable
303,428
-
303,428
-

Payroll Taxes
4,719
4,242
-
-

Corporation tax
314
266
-
-

308,461
4,508
303,428
-


Page 53

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
23.


Share capital

Authorised

2023
2023
2022
2022
Number
$
Number
$

Shares treated as equity
Ordinary shares of $0.157 each

2,950

463

2,950
 
463
 
2,950

463

2,950
 
463
 

Issued and fully paid


2023
2023
2022
2022
Number
$
Number
$

Ordinary shares of $0.157 each

At 1 January and 31 December
2,950

463

2,950
 
463
 

Other reserves – share premium      $1,202,021                 $1,202,021
There were no movements in equity share capital in the year.   
Ordinary shares have a par value of $0.157. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.
The share premium carried forward is the premium that arose from the issue of shares in 2012 and 2013.


24.


Reserves




Retained earnings

Retained earnings represent cumulative gains and losses recognised in the profit and loss account, net of transfers to/from other reserves or dividends paid.


25.


Contingent liabilities

The directors believe that there were no contingent liabilities which would have a material adverse effect on the group’s financial position. 


26.


Contingent asset

The group has UK corporation tax losses available of $19,803,359 to carry forward which amount to $3,762,638. The directors have not recognised this as a deferred tax asset in the current year as they believe that these losses will not be utilised in the immediate future.  

Page 54

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

27.


Capital commitments

There were no material capital commitments at 31 December 2023.


28.


Capital management

The principal activity of the group is television broadcasting and the provision of television programme services in the Eurasian and Baltic regions. For the purpose of the group’s capital management, capital includes issued capital and equity reserves. The primary objective of the group’s capital management is to maximise the shareholder value.
The group is largely funded by the group undertakings and other connected parties, and borrowings from the bank as included in Note 17.  The group manages its capital structure according to the business and economic conditions. The group includes within net debt, non-interest-bearing borrowings from group undertakings and other connected parties, trade and other payables, less cash and short-term deposits. There are no financial covenants attached to the borrowings from the group companies. No changes were made in the objectives, policies or processes for managing capital during the years ended 31 December 2023 and 2022.
The group is not subject to any externally imposed capital requirements and does not avail of any debts external to the group.


29.


Related party transactions

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

Details of transactions between the Company and its related parties are disclosed below.

29.1 Loans from related parties


2023
2022
$
$


Interest payable on shareholders loan
367,899
1,594,773

367,899
1,594,773

Page 55

 
EURASIAN BROADCASTING ENTERPRISE LIMITED
 

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

29.Related party transactions (continued)


29.1 Loans from related parties (continued)

Transactions with related parties    
     
During the year ended 31 December 2023 the group purchased services to the value of $439,305, made payments to the value of $252,276, sold services to the value of $966,099 and received payments to the value of $142,103 from Setanta Sports Philippines Limited, a company with a common director in Michael O’Rourke. Setanta Sports Philippines Limited is 50% owned by Eurasian Broadcasting Enterprise Limited. At 31 December 2023 the group was owed $836,987 from Setanta Sports Philippines Limited (2022: $200,020).  
During the year ended 31 December 2023 the received payments to the value of $3,125 from Setanta Transmissions Limited, a company with a common director in Michael O’Rourke.  At 31 December 2023 the group was owed $Nil from Setanta Transmissions Limited (2022: $3,125).  
During the year ended 31 December 2023 the group purchased services to the value of $10,678,180, made payments to the value of $7,263,997, sold services to the value of $1,288,278 and received payments to the value of $1,674,644 from Adjara.com LLC, a company which is owned by the beneficial owner Teimuraz Ugulava. At 31 December 2023 the group owed $4,505,618 to Adjara.com LLC (2022: $705,069).
   
In the opinion of the directors these amounts arise in the ordinary course of business and the terms of the amounts due are in accordance with the terms ordinarily offered by the group. 
   
 Amounts due from connected parties are interest free and repayable on demand.    


30.

Events after the reporting date

There have been no significant events affecting the group since the year-end.


31.


Approval of the financial statements

The financial statements were approved and authorised for issue by the board of directors on 6 December 2024.


32.


Going concern

The group is in a net liability position at the financial year end. The group has the ongoing support of the beneficial owner and in addition revenue is expected to grow substantially as a result of new initiatives as discussed in the strategic report.
On this basis the financial statements have been prepared on a going concern basis.

Page 56