These financial statements have been prepared in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, Section 1A Small Entities, issued by the Financial Reporting Council. They are presented in £ sterling which is the company's functional currency.

These financial statements have been prepared under the historical cost convention in accordance with the accounting policies set out below.

Turnover is recognised at the fair value of the consideration received or receivable for services provided or goods supplied in the normal course of business under agreements with film studios and film production companies, excluding Value Added Tax and trade discounts. Turnover from the provision of production services is recognised when those services are provided to customers. Income from film residuals is recognised when it is probable that the economic benefits will flow to the company and the amount can be measured reliably.

Acquired goodwill is written off in equal annual instalments over its estimated economic life of 5 years.

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. 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:

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.