CAPITAL MUSICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
Capital Musicals Limited is a private company limited by shares and incorporated in England. The address of the registered office is Charing Cross Theatre, the Arches, Villiers Street, London WC2N 6NL.
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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
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The following principal accounting policies have been applied:
The company meets its day to day working capital requirements through its own resources and loans from third party angel investors who have provided funds specifically to support the company.
In March 2020 the World Health Organisation declared the Coronavirus a pandemic. Although there are currently no government restrictions preventing theatres in the UK being open without limiting capacity, the risk remains that rehearsals and performances could be delayed or cancelled because of positive cases within the performing company. However, with the continued success of the vaccination programme, audience confidence and attendance numbers at productions should improve.
The directors have prepared forecasts and cash flow projections based on a number of potential scenarios. These, together with the reserves and cash held, indicate that the company has adequate resources to continue in operational existence for the foreseeable future. Further financial support has been received by way of a bounce back loan. It is, however, difficult to determine the assumptions that will prove to be the most appropriate therefore there is an element of uncertainty existing.
After reviewing the forecasts and projections, at the time of approving these financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the next twelve months. The directors therefore consider it appropriate to continue to adopt the going concern basis in preparing the company's financial statements.
Turnover comprises the company's share, as producer, of admissions receipts after the theatre has deducted the relevant commissions and banking charges and is exclusive of VAT. Revenue is recognised in the period to which the attendance occurs.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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