Superhero Corporation Inc

Financial statements
for the year ended 31 December 2009
Income statement
for the year ended 31 December 2009
Notes Year Year
ended ended
31 Dec 2009 31 Dec 2008

US$m US$m

Revenue 2 523 475

Cost of sales (324) (321)
Gross profit 199 154

Distribution costs (49) (42)

Administrative expenses (41) (31)
Profit from operations 3 109 81

Finance costs 4 (2) (2)

Profit before tax 107 79

Income tax expense 5 (8) (5)

Profit after tax 99 74

Net profit for the year 99 74

Statement of financial position
at 31 December 2015
31-Dec-15 31-Dec-14

Notes US$m US$m

ASSETS

Non-current assets
Property, plant and equipment 6 389 312
389 312

Current assets
Inventories 7 12 4
Trade and other receivables 8 16 8
Bank balances and cash 8 7 1
35 13

Total assets 424 325

EQUITY AND LIABILITIES

Capital and reserves

Share capital 9 7 7
Accumulated profits 10 395 296
402 303

Non-current liabilities
Bank loans due after one year 11 8 10
8 10

Current liabilities
Trade and other payables 12 6 7
Tax liabilities 8 5
14 12

Total equity and liabilities 424 325

Changes in equity
for the year ended 31 December 2015

Share Accumulated
Notes capital profits Total

US$m US$m US$m

Balance at 1 January 2014 0.80 222.00 222.80

- - -
Transfers to income not recognised in the statement of comprehensiv - - -
Net profit for the year - 74.00 74.00
Preference share dividends 9,10 - -0.60 -0.60
Ordinary share dividends 0 0 0
Balance at 1 January 2015 0.80 295.40 296.20

Transfers to income not recognised in the statement of comprehensiv - - -

Newly issued shares 0.20 - 0.20
Shares bought back during the year -0.10 - -0.10
Net profit for the year - 99.00 99.00
Preference share dividends 9,10 - -0.60 -0.60
Ordinary share dividends 0 0 0
Balance at 31 December 2015 0.90 393.80 394.70
Summary of significant accounting policies
for the year ended 31 December 2015

The financial statements have been prepared under consistent accounting policies for both years.
There is no significant differences between the accounting policies followed by the Company and those
included in the International Financial Reporting Standards (IFRS) apart from disclosure items. The
financial statements have been prepared on the historical cost basis, except for the revaluation of land
and buildings and certain financial instruments. The principal accounting policies adopted are set out
below.

Revenue recognition

Sales of goods are recognised when goods are delivered and title has passed.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as
reported in the statement of comprehensive income because it excludes items of income or expense
that are taxable or deductible in other years and it further excludes items that are never taxable or
deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted
or substantively enacted by the statement of financial position date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amount of assets and liabilities in the financial statements and the corresponding tax basis used in the
computation of taxable profit, and is accounted for using the statement of financial position liability
method. Deferred tax liabilities are generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is probable that taxable profits will be available
against which deductible temporary differences can be utilised. Deferred tax is calculated at the tax
rates that are expected to apply to the period when the liability is settled or the asset realised. Deferred
tax is charged or credited in the statement of comprehensive income, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Property, plant and equipment

Land and buildings held for use in the production or supply of goods or services, or for administrative
purposes, are stated in the statement of financial position at their revalued amounts, being the fair
value on the basis of their existing use at the date of revaluation, less any subsequent accumulated
depreciation and subsequent accumulated impairment losses. Revaluations are performed with
sufficient regularity such that the carrying amount does not differ materially from that which would be
determined using fair values at the end of the reporting period. Any revaluation increase arising on the
revaluation of such land and buildings is credited to the properties revaluation reserve, except to the
extent that it reverses a revaluation decrease for the same asset previously recognised as an expense,
in which case the increase is credited to the statement of comprehensive income to the extent of the
decrease previously charged. A decrease in carrying amount arising on the revaluation of such land
and buildings is charged as an expense to the extent that it
exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation
of that asset. Depreciation on revalued buildings is charged to income. On the subsequent sale or
retirement of a revalued property, the attributable revaluation surplus remaining in the properties
revaluation reserve is transferred directly to accumulated profits.
Fixtures and equipment are stated at cost less accumulated depreciation and any
recognised impairment loss.

Summary of significant accounting policies (cont)

for the year ended 31 December 2015
Property, plant and equipment (continued)

Depreciation is charged so as to write off the cost or valuation of assets, other than land, over their
estimated useful lives, using the straight-line method, on the following bases:

Buildings 4%
Fixtures and equipment 10% - 30%

The gain or loss arising on the disposal or retirement of an asset is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognised in income.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials
and, where applicable, direct labour costs and those overheads that have been incurred in bringing the
inventories to their present location and condition. Cost is calculated using the weighted average
method. Net realisable value represents the estimated selling price less all estimated costs of
completion and costs to be incurred in marketing, selling and distribution.

Financial assets and liabilities

Financial assets and financial liabilities are recognised on the Company’s statement of financial
position when the Company becomes a party to the contractual provisions of the instrument.

Trade receivables
Trade receivables are stated at their nominal value as reduced byn appropriate allowances for
estimated irrecoverable amounts.

Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue
costs. Finance charges, including premiums payable on settlement or redemption, are accounted for
on an accrual basis and are added to the carrying amount of the instrument to the extent that they are
not settled in the period in which they arise.

Trade payables
Trade payables are stated at their nominal value.

Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue
costs.
Notes to the financial statements
for the year ended 31 December 2015
1 General

Superhero Corporation Inc (the "Company") is a limited company incorporated in the United States
of America. The principal activity of the Company is the production of children's magazines. These
financial statements are presented in US dollars since that is the currency in which the majority of
the Company’s transactions are denominated.

2 Revenue

All revenue relates to continuing operations and to the principal activity of the Company. All sales
and production are in the United States of America.

3 Profits from operations

Profit from operations has been arrived at after charging (crediting): 2015 2014
US$m US$m
Cost of inventories recognised as an expense 207 195
Staff costs 2 1
Total depreciation 46 30

4 Finance costs 2015 2014

US$m US$m
Interest on bank overdrafts and loans 2 2
Preference share dividends 1 0
3 2

5 Income tax expense 2015 2014

US$m US$m
Current tax - domestic 8 5
Deferred tax 0 0
8 5

Domestic income tax is calculated at 30 per cent (2014: 30 per cent) of the estimated assessable
profit for the year.

The charge for the year can be reconciled to the profit per the statement of comprehensive income as follows:

2015 2014
US$m US$m
Profit before tax 107 79

Tax at the domestic income tax rate of 30% (2014: 30%) 32 24

Tax effect of utilisation of tax losses not previously recognised (24) (19)
8 5

Preference share dividends (see Note 9) are deductible for tax purposes, but are immaterial for the
purposes of the reconciliation above.
Notes to the financial statements (continued)
for the year ended 31 December 2015
6 Property, plant and equipment
Land and Fixtures and
buildings equipment Total
Cost
At 1 January 2015 320 85 405
Additions 0 147 147
Disposals 0 (24) (24)
At 31 December 2015 320 208 528

Accumulated depreciation
At 1 January 2015 45 48 93
Charge for the year 5 63 68
Eliminated on disposals 0 (22) (22)
At 31 December 2015 50 89 139

Carrying amount
At 31 December 2015 270 119 389
At 31 December 2014 275 37 312

7 Inventories 2015 2014

US$m US$m
Work-in-progress 3 1
Finished goods 9 3
12 4

8 Other financial assets

Trade and other receivables at the statement of financial position date comprise amounts receivable
from the sale of goods of US$16m (2014: US$8m). The average credit period taken on sales of
good is 33 days. The directors consider that the carrying amount of trade and other receivables
approximates their fair value.

Bank balances and cash comprise cash held by the Company.

9 Share capital 2015 2014

US$m US$m
Authorised:
1,500,000 ordinary shares of par value $1 each 1.5 1.5
600,000 US$10 10% preference shares 6 6
7.5 7.5

Issued and fully paid:

900,000 ordinary share of par value $1 each 0.9 0.8
600,000 US$10 10% preference shares 6 6
6.9 6.8

On 5 February 2015, the Company bought back 100,000 ordinary shares. On 12 September 2015,
the Company issued 200,000 ordinary shares. There were no movements in the share capital of the
Company in the 2014 reporting period.

The Company has one class of ordinary shares which carry no right to fixed income.

The Company has 600,000 US$10 10% preference shares. Interest paid in 2015 was US$600,000
(2014: US$600,000). Preference share dividends are tax deductible.
Notes to the financial statements (continued)
for the year ended 31 December 2015
10 Accumulated profits
US$m
Balance at 1 January 2014 222
Dividends paid 0
Net profit for the year 74
Balance at 1 January 2015 296
Dividends paid 0
Net profit for the year 99
Balance at 31 December 2015 395

11 Bank overdrafts and loans 2015 2014

US$m US$m
Bank loans 10 12
10 12

The borrowings are repayable as follows:

On demand or within one year 2 2

In the second year 2 2
In the third to fifth years inclusive 6 6
After five years 0 2
10 12

Less: Amount due for settlement within 12months (in current liabilities) (2) (2)
Amount due for settlement after 12months 8 10

All borrowings are denominated in US dollars. The average interest rate paid during 2015 was 20%
(2014: 20%). The directors estimate that the fair value of the Company's borrowings is the same as
the carrying value.

The Company has one 10 year bank loan of US$10million (2014: US$12million) repayable by equal
annual instalments which commenced 1 January 2005.

12 Other financial liabilities

Trade and other payables principally comprise amounts outstanding for trade purchases and
ongoing costs. The average credit period taken on trade purchases is 37 days.

The directors consider that the carrying amount of trade payables approximates to their fair value.

13 Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on 15
March 2015.