Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. The company is a community company limited by guarantee and is incorporated in Northern Ireland.

The company’s operations and principal activities are the promotion of Arts through an annual Arts Festival within Northern Ireland.

Turnover is measured at the fair value of the consideration received or receivable for ticket sales, net of discounts and Value Added Tax.

Revenue from the sale of tickets is recognised when the festival has taken place; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the company and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.

Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation is calculated so as to write off the cost of tangible fixed assets, over their expected useful lives as follows:

Grants that relate to specific capital expenditure are treated as deferred income which is then credited to the profit and loss account over the related asset’s useful life. Revenue grants are credited to the profit and loss account when received.