The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

At the balance sheet date the company had net liabilities. The company's major creditor is its parent, and that company has confirmed that it will not withdraw its financial support to the detriment of the company or its other creditors. Until the company is in a position to generate income, it is dependent upon the parent company's financial support to meet its liabilities as they fall due. The directors are satisifed that financial support will not be withdrawn for the foreseeable future. Accordingly, the accounts have been prepared on a going concern basis.

Other intangible assets are film development costs. Film development costs relate to the development of a film based on the story of the founder of Rock Choir Limited, the rights to which the company owns. Costs were capitalised in prior years and related to script writing and script development. On completion, the film is expected to generate revenues. There is no date for when the film will be finished, and for this reason no amortisation policy has been determined or applied. At the year end, the company undertook an impairment review on the intangible asset and concluded that all monies spent on scriptwriting and story development to date still have ongoing value and are worth at least the cost, and therefore there was no impairment of the intangible at the year end.