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WORLD GROUP OF COMPANIES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
World Group of Companies is a private limited liability company incorporated in England & Wales. Its registered office is at 5 Elstree Gate, Elstree Way, Borehamwood, WD6 1JD.
The principal activity of the Company continued to be that of a holding company in the film, television and related media sectors.
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.
At the Statement of Financial Position date the company had a net deficit of $7.7 million. This principally comprises equity of $75,000 classified as debt, cumulative unpaid preference share dividends of $2,720,000, loan notes of $3,825,000, and cumulative accrued loan note interest of $900,000. The loan note holder has confirmed that there is no intention to demand repayment and all preference dividends and loan note interest have been waived since the year ended 31 December 2001. The director has also confirmed that it is his intention to ensure that the company will have sufficient financial resources made available to enable it to meet any liabilities that may fall due for at least twelve months from the date of his approval of these financial statements. On this basis the director believes that it remains appropriate for the financial statements to be prepared on a going concern basis.
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Exemption from preparing consolidated financial statements
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The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
Rights to exploit film and television libraries are capitalised at cost as intangible fixed assets. Costs are amortised in the proportion that income for the accounting period bears to the director's forecast of total revenues to be received in the foreseeable future. If estimated future income does not exceed unamortised costs, provision is made for the shortfall.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Investments in subsidiaries are measured at cost less accumulated impairment.
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