Annual Report & Accounts 2013 - Pinewood Studios

106 Pinewood Shepperton plcAnnual Report & Accounts 2013Company UK GAAP financial statements continuedNotes to the financial statements continued8. Long-term assetsCost:Torontolong-termagreement£000Atlantajoint ventureagreement£000Chinajoint ventureagreement£000At 1 January 2011 94 – – 94Additions – – – –At 31 March 2012 94 – – 94Additions – 24 39 63At 31 March 2013 94 24 39 157Amortisation:At 1 January 2011 – – – –Provided during the 15 month period 27 – – 27At 31 March 2012 27 – – 27Provided during the year 24 – – 24At 31 March 2013 51 – 51Carrying value:At 31 March 2013 43 24 39 106At 31 March 2012 67 – – 67The Group signed a ten year sales and marketing agreement with Pinewood Toronto Studios on 26 May 2009. Transactioncosts in relation to this agreement have been recognised as a long-term asset and are being amortised over the term ofthe agreement. The costs relating to the 50/50 JV agreements with Seven Stars Media in China, and River Rock LLC inAtlanta, have also been classed as long-term assets to be amortised over the terms of the respective agreements.On 29 April 2013, the Group announced it had entered into a joint venture (Pinewood Atlanta LLC), with River's Rock LLC.The joint venture will work to initially develop 288 acres of land south of Atlanta, Georgia, USA, into world-class studiofacilities for the production of film, television, music and video games. The business will operate under the Pinewoodtrademark and Pinewood has received 40% of the shareholding in the joint venture. Pinewood will provide the jointventure with sales and marketing services. Transaction costs of £24,000 in relation to this joint venture have beenrecognised as a long-term asset. The costs will be amortised over the first three years of the Studio’s operations,commencing when the Studio opens for business.On 17 April 2013, the Group signed a 50:50 joint venture agreement (Song Lin) with Seven Stars Media Limited, partof China’s leading private media group which provides content creation and distribution, media services and events.Transaction costs of £39,000 in relation to this joint venture have been recognised as a long-term asset. The costs willbe amortised upon commencement of the agreement over the first two years of the joint ventures operations.Total£000