Untitled

Music copyrighB
Music copyrigh$ purchased prior to I April 1989 were witten
off against shareholders' fun& on acquisition. Copynghts rquired
as a resuh of acqusitiors on or after 1 April 1989 are capitalised
as intangible assets in the Group balance sheet, and are arnortised
by equal annual amounts o/er not morc than 20 yean, other than
in exceptional circumstances when sufftcient ongoing impainr€nt
tests can be perfonned to support a useful economk life of over
20 years. Where a useful economic life of up to 20 years has been
adopted, copyrights are revia,,ued for impairment at the end of the
first full financial year follcM/ing acquisition and in other periods if
sr'ents or changes in circumstances indicate that the carrying value
may rot be recolerable.
Advanc6 to artists
Advances to artisb and repertcite oivners ale assessed and the
valte of the unrecouped portion to be induded in debtors is
determined ry the prospecb of futuc recoupment based on
past sales performance, ornent popuhrity and pro.iected sales.
Leased a$eb
Assets held under finance leases arc induded a tangible fixed
assets at their estimated purchase cost and depreciated cner their
oeected useful lives, or c /er the primary lease period, whicharer
is shortw. The obligations relating to finance leases (net of finance
chargs allocated to future periods) are induded under bonorauings
due within or after one year, as appropriate. Operating lease
rentals are charged to the profit and loss account on a straightline
bais orer the lease term.
Depreciation of tangible fixed aseB
Depreciation of tangible fixed assets is cakuhted on cost at rates
estimated to wite off the cost less the 6timated residual value of
the relEr'ant asseb ry equal annual amounts o€r their expected
useful lives; effect is given, where necessary, to commercial and
technical obEolescence.
Stocks
Stocks and wok in progress are statd at the lo^/er of cost
and net realisable value, less progms payrnents on uncompleted
contracts and prwisions for expected losss. Cost includes
manufactunng o€*rea& wtere appropriate.
Provisions
FRS12 - Povigont Conttue/],t As5€B ard Cqtiryent Liabilitis,
was adopted with effect frorn 1 April 1998.
Ta€tion
The Company ha undertaken to dirharge the liability to
corporation tax of $e majority of is wholt o/vrEd UK
subsidiaries. Their UK tax liabilities are therefore deatt with
in the accounb of the Company.
Deferred taxation is calculated using the liability method in respect
of timing differences arising primarily from the difference between
the accounting and tax ueatrnen$ of depreciation. Provision is
made, or recoery antrcipated, vvhere timing differences are
oeected to re€rse without redtrement in the foreseeable future.
Financial instruments
Any premium or disco.rnt associated with the purchase of intetest
rate instruments is amortised oer the lffe of the transaction.
lntercst receipts and paymens are accrued to match tl€ net
income or cost with the related finance expene. No arnounB
are recognised rn respect of future periods.
New media holdings
Holdings in nan media companies that arise as a consequence of
licensing, distnbution and other simihr deals wrth such companies,
are canied at cost, which is typicalh/ minimal. lncome from these
holdings, net of cosB, is only recognised when recenred as cash
and is treaed as other operating incorne. The cosb relating to
frese investrnenB are held within debtors until being recognised
with the relaed incorne.