GOING CONCERNIncluded within creditors is £1,617,553 (2016: £1,548,674) due to Motorsport Network LLC, a groupcompany. On 1 January 2018, 95% of the share capital of the company was acquired by DanegeldHoldings Limited, a company incorporated in the British Virgin Islands. On the date that those shareswere acquired, and control changed, the total amount within creditors, due to Motorsport NetworkLLC, was waived.The new ultimate controlling party has indicated that they are supportive of the group (whichconstitutes Amalgam Holdings Limited and all of its direct and indirect subsidiaries) in executing itsturnaround plan. The new ultimate controlling party have also indicated that further financial supportwill be made available where necessary to ensure the group continues to operate for a period of atleast 12 months from approval of these financial statements. On this basis, the directors consider thatthe preparation of these financial statements on the going concern basis is appropriate.FINANCIAL INSTRUMENTSThe Company only enters into basic financial instrument transactions that result in the recognition offinancial assets and liabilities like trade and other debtors and creditors, loans from banks and otherthird parties, loans to related parties and investments in non-puttable ordinary shares.Debt instruments (other than those wholly repayable or receivable within one year), including loansand other accounts receivable and payable, are initially measured at present value of the future cashflows and subsequently at amortised cost using the effective interest method. Debt instruments thatare payable or receivable within one year, typically trade debtors and creditors, are measured, initiallyand subsequently, at the undiscounted amount of the cash or other consideration expected to be paidor received. However, if the arrangements of a short-term instrument constitute a financingtransaction, like the payment of a trade debt deferred beyond normal business terms or financed at arate of interest that is not a market rate or in the case of an out-right short-term loan not at marketrate, the financial asset or liability is measured, initially, at the present value of the future cash flowdiscounted at a market rate of interest for a similar debt instrument and subsequently at amortisedcost.Financial assets that are measured at cost and amortised cost are assessed at the end of eachreporting period for objective evidence of impairment. If objective evidence of impairment is found, animpairment loss is recognised in the Statement of comprehensive income.For financial assets measured at amortised cost, the impairment loss is measured as the differencebetween an asset's carrying amount and the present value of estimated cash flows discounted at theasset's original effective interest rate. If a financial asset has a variable interest rate, the discount ratefor measuring any impairment loss is the current effective interest rate determined under thecontract.For financial assets measured at cost less impairment, the impairment loss is measured as thedifference between an asset's carrying amount and best estimate of the recoverable amount, which isan approximation of the amount that the Company would receive for the asset if it were to be sold atthe reporting date.FINANCE COSTSFinance costs are charged to the Statement of comprehensive income over the term of the debtusing the effective interest method so that the amount charged is at a constant rate on the carryingamount. Issue costs are initially recognised as a reduction in the proceeds of the associated capitalinstrument.BORROWING COSTSAll borrowing costs are recognised in the Statement of comprehensive income in the year in whichthey are incurred.EXCEPTIONAL ITEMSExceptional items are transactions that fall within the ordinary activities of the Company but arepresented separately due to their size or incidence.JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATIONUNCERTAINTY<Deferred tax asset>The company has not recorded the deferred tax asset of £Nil (2016: £24,673) relating to losses and otherdeductions as it uncertainty as to when future profits will arise within this company. See Note "GOING CONCERN" forfurther details.<Recoverability of amounts owed by group>The directors believe that the amounts owed from group undertakings are recoverable in full and thereforedo not require impairment. Although the group company that owes this money is currently loss making,the directors are committed to a new turnaround plan and thus believe the company will become profitablein the future, see Note "GOING CONCERN" for further details.<Carrying value of investments>The company in the prior year invested £537,181 in the setup of a subsidiary, see Note "FIXED ASSET INVESTMENTS". The directorsdo not consider this investment to be impaired, despite the subsidiary currently being loss making, as thiscompany is newly incorporated and is in its set-up phase. The directors believe that the company will startgenerating profits in the next 2-3 years and believe that the projected income will be in excess of itscurrent carrying amount.