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Low Phat Films Limited
Notes to the financial statements
For the period ended 31 March 2020
Low Phat Films Limited is a private company limited by shares incorporated in England & Wales. The registered office is at Montague Place Quayside, Chatham Maritime, Chatham, Kent, ME4 4QU.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The accounts have been prepared on a going concern basis.
As a subsidiary company, Low Phat Films Limited is completing individual project work on behalf of its parent company, Great Guns Limited. As such, it has net assets and no significant third party creditors; it continues to be supported by its parent company. Although the Covid-19 pandemic and UK lockdown has resulted in operational restrictions, the project work has been completed after the year end. The Director considers that there is no reason why the company would not be able to continue trading for the foreseeable future.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
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