Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets and are depreciated over their useful lives. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Profit and Loss Account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.

Work in progress is valued at the lower of cost and net realisable value. The cost of work in progress includes all production costs and overheads. Net realisable value is based on estimated selling price less estimated cost of disposal. Work in progress is provided in the accounts in respect of costs incurred at balance sheet date relating to un-invoiced work, contracted or commissioned. Production costs relating to speculative filming (including non contracted 'pilot film' work) are written off to the period in which they are incurred.

Monetary assets and liabilities denominated in foreign currencies (other than the functional currency of the company, which is sterling) are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All exchange differences are taken to the Profit and Loss account.