Chapter One Marketing & Design (2014) Limited
Chapter One Marketing & Design (2014) Limited
Registered number: 09132525
Abbreviated accounts
For The Year Ended 30 November 2016
Advantage ATO
Chartered Certified Accountants
136 Elliott Street
Tyldesley
Greater Manchester
M29 8FJ
Chapter One Marketing & Design (2014) Limited
Company No. 09132525
Abbreviated Balance Sheet
30 November 2016
Abbreviated Balance Sheet
| 30 November 2016 | Period to 30 November 2015 as restated |
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| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Intangible Assets | 2 |
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| Tangible Assets | 3 |
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| 33,281 | 49,285 | ||||
| CURRENT ASSETS | |||||
| Debtors |
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| Cash at bank and in hand |
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| Creditors: Amounts Falling Due Within One Year |
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| NET CURRENT ASSETS (LIABILITIES) |
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| TOTAL ASSETS LESS CURRENT LIABILITIES |
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| Creditors: Amounts Falling Due After More Than One Year | 4 |
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| PROVISIONS FOR LIABILITIES | |||||
| Deferred Taxation |
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| NET ASSETS |
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| CAPITAL AND RESERVES | |||||
| Called up share capital | 5 |
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| Profit and Loss Account |
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| SHAREHOLDERS' FUNDS |
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Chapter One Marketing & Design (2014) Limited
Company No. 09132525
Abbreviated Balance Sheet (continued)
30 November 2016
Directors' responsibilities:
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The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. -
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. -
These abbreviated accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the Financial Reporting Standard for Smaller Entities (effective 2015).
On behalf of the board
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Chapter One Marketing & Design (2014) Limited
Notes to the Abbreviated Accounts
For The Year Ended 30 November 2016
Notes to the Abbreviated Accounts
1.
Accounting Policies
1.1.
Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).
1.2.
Going Concern Disclosure
At the balance sheet date, the company had net current liabilities, however the directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern. The company is fully supported by the directors and continues to operate within its bank facilities.
1.3.
Turnover
Turnover comprises the invoiced value of design and marketing services supplied by the company, net of Value Added Tax and trade discounts.
1.4.
Intangible Fixed Assets and Amortisation - Goodwill
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of 4 years.
1.5.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at cost less depreciation. 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:
| Fixtures & Fittings |
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| Computer Equipment |
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1.6.
Leasing and Hire Purchase Contracts
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
1.7.
Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
1.8.
Deferred Taxation
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in periods in which the timing differences reverse, based on tax rates and the law enacted or substantively enacted at the balance sheet date.
1.9.
Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
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Chapter One Marketing & Design (2014) Limited
Notes to the Abbreviated Accounts (continued)
For The Year Ended 30 November 2016
1.10.
Government grant
Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.
Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.
Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.
All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.
1.11.
Prior year adjustments
It has been necessary to prior year adjust and restate the financial statements for the year ended 30 November 2015 in order to take into consideration the purchased goodwill in relation to the incorporation of the trade of Chapter One Design & Marketing LLP, into Chapter One Marketing & Design (2014) Limited on 1 December 2014. The former members and partners of the LLP are now directors and shareholders in this company on the same proportional basis as the former LLP.
The purchased goodwill valuation of £60,000 has therefore been capitalised under intangible assets on the balance sheet, with the corresponding consideration assigned to each of the director's loan accounts.
The director's consider it appropriate to amortise the goodwill over a period of four years, therefore a further prior year provision of £15,000 has been accounted for which has been debited as a charge within the profit and loss account. This adjustment does attract a corporation tax saving of £2,997 on the 2015 profits chargeable to corporation tax.
It has been necessary to reverse the previously disclosed interim dividends to Mr Timothy Ogden on the basis that the amortisation charge above made the balance sheet insolvent, therefore £15,000 has been re-assigned from interim dividends paid and offset against the director's loan account balance owing to Mr Timothy Ogden. This adjustment does not affect the company's 2015 corporation tax provision.
Furthermore, the provision of the purchased goodwill assigned against the directors loan account of Miss Janette Malones means that her balance formerly stated as overdrawn as £6,317 was reduced and restated to be £3,316. This adjustment does not give rise to a corporation tax liability.
In addition, the provision of the purchased goodwill assigned against the director's loan account of Mr Michael Driver means that his balance formerly stated as £799 in credit, increased to £12,797. This adjustment does not give rise to a corporation tax liability.
2.
Intangible Assets
| Total | ||
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| Cost | £ | |
| As at |
60,000 | |
| As at |
60,000 | |
| Amortisation | ||
| As at |
15,000 | |
| Provided during the period | 15,000 | |
| As at |
30,000 | |
| Net Book Value | ||
| As at |
30,000 | |
| As at |
45,000 | |
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Chapter One Marketing & Design (2014) Limited
Notes to the Abbreviated Accounts (continued)
For The Year Ended 30 November 2016
3.
Tangible Assets
| Total | |
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| Cost | £ |
| As at |
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| Additions |
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| As at |
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| Depreciation | |
| As at |
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| Provided during the period |
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| As at |
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| Net Book Value | |
| As at |
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| As at |
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Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:
| 30 November 2016 | Period to 30 November 2015 as restated |
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| £ | £ | ||
| Computer Equipment |
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4.
Creditors: Amounts Falling Due After More Than One Year
| 30 November 2016 | Period to 30 November 2015 as restated |
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| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts |
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Chapter One Marketing & Design (2014) Limited
Notes to the Abbreviated Accounts (continued)
For The Year Ended 30 November 2016
6.
Ultimate Controlling Party
The company's ultimate controlling party is Mr Timothy Ogden by virtue of his ownership of 70% of the issued share capital in the company.
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