# 18. FILM RIGHTS AND FILMS AND TV PROGRAMMES UNDER PRODUCTION (continued)

<table><tr><td rowspan="2"></td><td>Film and TV
programmes
rights</td><td>Films and TV
 programmes
under 
production</td><td>Total</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>31 December 2015</td><td></td><td></td><td></td></tr><tr><td>Cost:</td><td></td><td></td><td></td></tr><tr><td>At 1 January 2015</td><td>7,958</td><td>—</td><td>7,958</td></tr><tr><td>Additions</td><td>—</td><td>41,117</td><td>41,117</td></tr><tr><td>Disposals</td><td>(10,276)</td><td>—</td><td>(10,276)</td></tr><tr><td>Transfer to films and TV programmes rights</td><td>38,634</td><td>(38,634)</td><td>—</td></tr><tr><td>At 31 December 2015</td><td>36,316</td><td>2,483</td><td>38,799</td></tr><tr><td>Accumulated amortisation:</td><td></td><td></td><td></td></tr><tr><td>At 1 January 2015</td><td>7,366</td><td>—</td><td>7,366</td></tr><tr><td>Disposals</td><td>(7,366)</td><td>—</td><td>(7,366)</td></tr><tr><td>At 31 December 2015</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Carrying amount</td><td>36,316</td><td>2,483</td><td>38,799</td></tr></table>

For the purpose of impairment testing, film rights have been allocated to the cash generating unit of movies, TV programmes and internet contents operation.

In light of the circumstances of film industry, the Group regularly reviewed its library of film rights to assess the marketability of film rights and the corresponding recoverable amounts.

At 31 December 2016 and 2015, the directors of the Company believe that any reasonably possible change in the key assumptions on which the recoverable amounts would not cause the carrying amounts of the films and TV programmes rights exceed the aggregate recoverable amounts.

During the year ended 31 December 2016, there is an impairment loss of approximately HK\$6,004,000 recognised in respect of films and TV programmes under production, based on contractual cash flows less cost to sell which solely related to the Group’s TV programmes under production and distribution activities based in Mainland China.

# 19. INVESTMENT IN FILM

During the year ended 31 December 2016, the Group has one (2015: Nil) film investment agreement at a total contract amount of HK\$16,750,000 (2015: Nil). The investment is governed by the relevant agreement entered into between the Group and the production house whereby the Group is entitled to a fixed rate of return at 15% per annum on the principal amount. Investment income of HK\$1,982,000 was recognised by the Group.

# 20. AMOUNTS DUE FROM RELATED COMPANIES

On 21 December 2015, Young Film Culture Media Company Limited (“Young Film”), a subsidiary of the Company, entered into a master services agreement (the “Master Services Agreement”) with青島年青時候影視文化傳媒有限公司 (Qingdao Young Times Video Cultural Media Company Limited) (“Qingdao Young Times”) which is controlled by Ms. Shang Na, a member of the key management personnel of the Group, pursuant to which Qingdao Young Times shall provide to Young Film services including the production and promotion of movies, TV dramas and programmes as requested by the Group for a term of three years from the date of the Master Services Agreement. The services under the Master Services Agreement shall be charged on a cost basis (as incurred by Qingdao Young Times). For more details of the Master Services Agreement, please refer to the announcement of the Company dated 21 December 2015.

As at 31 December 2016, included in amounts due from related companies was an amount of approximately HK\$45,440,000 (2015: HK\$24,000,000) advanced by the Group to Qingdao Young Times for the services under the Master Services Agreement.

# 21. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES

<table><tr><td rowspan="2"></td><td>2016</td><td>2015</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Deposits</td><td>5,718</td><td>2,569</td></tr><tr><td>Prepayments</td><td>20,793</td><td>12,268</td></tr><tr><td>Other receivables</td><td>19,198</td><td>11,373</td></tr><tr><td>Impairment</td><td>(6,374)</td><td>—</td></tr><tr><td></td><td>39,335</td><td>26,210</td></tr></table>

As at 31 December 2016, except for fully impaired other receivables of HK\$6,374,000 (2015: Nil), none of the above assets is either past due or impaired. The financial assets included in the above balances relate to receivables for which there was no recent history of default.