Annual Report & Accounts 2013 - Pinewood Studios

Pinewood Shepperton plc 77Annual Report & Accounts 2013Notes to the consolidated financial statements continued17. Long-term assetsCost:Torontolong-termagreement£000Malaysialong-termagreement£000DominicanRepubliclong-termagreement£000Atlanta jointventureagreement£000China jointventureagreement£000At 1 January 2011 94 188 65 – – 347Additions – – – – – –At 31 March 2012 94 188 65 – – 347Additions – 10 – 24 39 73At 31 March 2013 94 198 65 24 39 420Amortisation: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 43 198 65 24 39 369At 31 March 2012 67 188 65 – – 320The 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 termof the agreement.Pinewood Malaysia Limited signed a long-term agreement on 16 December 2009 until the ten-year anniversary of theopening of Pinewood Iskandar Malaysia Studios to provide marketing, operations and management support. Transactioncosts of £198,000 in relation to this agreement have been recognised as a long-term asset. The costs will be amortisedover the period of the agreement commencing when the Studio opens for business.Pinewood Dominican Republic Limited signed an agreement on 20 May 2010 with a term of 15 years to provide sales,marketing and operations support to Pinewood Dominican Republic Studios. Transaction costs of £65,000 in relation tothis agreement have been recognised as a long-term asset. The costs will be amortised over the period of the agreementcommencing when the Studio opens for business.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 costswill be amortised upon commencement of the agreement over the first two years of the joint ventures operations.Total£000