Positive News Publishing Limited

The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.

The board is encouraged by the performance of the business during the year and is confident in its current trajectory towards financial sustainability. However, the company has incurred significant operating losses over the last two years. Although losses were forecast during this period in the 2015 business plan that accompanied a community share offer in the company's parent society, there is some uncertainty about whether it can continue as a going concern. The directors have taken the following actions to ensure that it is able to continue:

– obtained a grant of £80,000 in September 2017;

– begun implementing a revised business strategy focused on driving membership and monetising the online community of supporters and readers of Positive News via an improved website;

– obtained some further donations and the promise of more;

– planned a significant fundraising campaign, through which the directors are identifying and approaching key individuals in Positive News’ readership.

The directors are assessing the opportunity to raise further financial support from the parent society’s members once the business plan has started to show sufficient results, with a view to enabling the society and companyto continue until such time as the required revenue streams are produced.

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover consists of advertising sales and subscriptions for the Positive News magazine. Subscriptions are stated net of any subscriptions received in respect of future editions of Positive News.

Other intangible assets are the website development. It is has not yet been amortised to as it did not go live until after the year end.

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. 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:

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. Magazine stocks are often given or way or sold at a reduced value, so in these accounts the stock of magazines is stated at its estimated net realisable value.