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Absolute Music Solutions Ltd

Annual Report and Unaudited Financial Statements
Year Ended 30 September 2017

Registration number: 04827522

Absolute Music Solutions Ltd

Contents

Balance Sheet	1 to 2
Notes to the Financial Statements	3 to 12

Absolute Music Solutions Ltd

Balance Sheet

30 September 2017

	Note	2017 £	2016 £
Fixed assets
Intangible assets	4	30,833	40,697
Tangible assets	5	327,652	371,894
Investments	6	100	100
		358,585	412,691
Current assets
Stocks	7	1,420,626	1,260,440
Debtors	8	291,756	286,540
Cash at bank and in hand		1,243	626
		1,713,625	1,547,606
Creditors: Amounts falling due within one year	9	(1,710,502)	(1,534,089)
Net current assets		3,123	13,517
Total assets less current liabilities		361,708	426,208
Creditors: Amounts falling due after more than one year	9	(41,905)	(111,052)
Net assets		319,803	315,156
Capital and reserves
Called up share capital		100	100
Profit and loss account		319,703	315,056
Total equity		319,803	315,156

The notes on pages 3 to 12 form an integral part of these financial statements.

Page 1

Absolute Music Solutions Ltd

Balance Sheet

30 September 2017

For the financial year ending 30 September 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 5 February 2018 and signed on its behalf by:
 

A D Barclay

Director

Company Registration Number: 04827522

The notes on pages 3 to 12 form an integral part of these financial statements.

Page 2

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2017

1	General information

The company is a private company limited by share capital incorporated in England and Wales.

The address of its registered office is:
Units 3-5
Knighton Heath Industrial Estate
855 Ringwood Road
Bournemouth
Dorset
BH11 8NE

These financial statements were authorised for issue by the Board on 5 February 2018.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Change in basis of accounting

The company's financial statements have been prepared in accordance with FRS102 - the Financial Reporting Standard applicable in the UK and Republic of Ireland. The company has transferred from previously extant UK GAAP to FRS102 as at 1 October 2015. Comparatives have been restated and an explanation of how transition to FRS102 has affected the reported financial performance is given in Note 12.

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts..

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Page 3

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2017

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold costs and alterations	Straight line over lease term
Equipment	20% straight line
Computer equipment	33.33% straight line
Motor vehicles	25% reducing balance

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Website	Over 3 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Page 4

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2017

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 5

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2017

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 50 (2016 - 40).

Page 6

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2017

4	Intangible assets

	Website  £	Total £
Cost or valuation
At 1 October 2016	157,689	157,689
Additions acquired separately	13,664	13,664
At 30 September 2017	171,353	171,353
Amortisation
At 1 October 2016	116,992	116,992
Amortisation charge	23,528	23,528
At 30 September 2017	140,520	140,520
Carrying amount
At 30 September 2017	30,833	30,833
At 30 September 2016	40,697	40,697