NAUGHTY_WORDS_LIMITED - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 May 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Naughty Words Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5A Bear Lane, London, SE1 0UH.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and rebates.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

At the year end the company had the following balances outstanding with companies related by virtue of common control:

• NBR Music Ltd - The company was owed included in debtors £41,701 (2017 - £282,201). During the year, the company made payments to or paid expenses on behalf of NBR of £119,500 while NBR made payments to or paid expenses on behalf of the company of £360,000.

• SK Records Ltd - The company owed £14,900 included in creditors (2017 - £5,700). During the year, the company made payments to or paid expenses on behalf of SK Records Ltd of £52,800 while SK Records Ltd made payments to or paid expenses on behalf of the company of £62,000.

• NB Touring Ltd - The company owed £5,700 included in creditors (2017 - £6,700). During the year, the company made payments to or paid expenses on behalf of NB Touring Ltd of £18,000 while NB Touring Ltd made payments to or paid expenses on behalf of the company of £17,000.

Transactions are disclosed on a aggregated basis due to the volume of these transactions.

Dividends totalling £0 (2017 - £0) were paid in the year in respect of shares held by the company's directors.

During the year the director made payments to or on behalf of the company of £353,498 and the company made payments to or on behalf of the director of £349,158 . At the year end, the director owed the company £192,048 included in creditors (2017 - £2,610 owed by the company).

Interest has been charged on the outstanding balance at a rate of 2.5%.

Transactions are disclosed on an aggregated basis.