These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102
Turnover represents the amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time. If, at the balance sheet date, completion of contractual obligations is dependent on external factors (and thus outside the control of the Limited Liability Partnership), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the balance sheet date are carried forward as work in progress.All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that areclassified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net. Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due tomembers’ to the extent they exceed debts due from a specific member.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:Computers 33% on cost The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.Financial instruments are recognised in the limited liability partnership's statement of financial position whenthe limited liability partnership becomes party to the contractual provisions of the instrument.Financial assets and liabilities are offset and the net amounts presented in the financial statements whenthere is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a netbasis or to realise the asset and settle the liability simultaneously.Basic financial assetsBasic financial assets, which include debtors and cash and bank balances, are initially measured attransaction price including transaction costs and are subsequently carried at amortised cost using the effectiveinterest method unless the arrangement constitutes a financing transaction, where the transaction ismeasured at the present value of the future receipts discounted at a market rate of interest. Financial assetsclassified as receivable within one year are not amortised.Other financial assetsOther financial assets, including investments in equity instruments which are not subsidiaries, associates orjoint ventures, are initially measured at fair value, which is normally the transaction price. Such assets aresubsequently carried at fair value and the changes in fair value are recognised in profit or loss, except thatinvestments in equity instruments that are not publicly traded and whose fair values cannot be measuredreliably are measured at cost less impairment.Impairment of financial assetsFinancial assets, other than those held at fair value through profit and loss, are assessed for indicators ofimpairment at each reporting end date.Financial assets are impaired where there is objective evidence that, as a result of one or more events thatoccurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.If an asset is impaired, the impairment loss is the difference between the carrying amount and the presentvalue of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment lossis recognised in profit or loss.If there is a decrease in the impairment loss arising from an event occurring after the impairment wasrecognised, the impairment is reversed. The reversal is such that the current carrying amount does notexceed what the carrying amount would have been, had the impairment not previously been recognised. Theimpairment reversal is recognised in profit or loss.Derecognition of financial assetsFinancial assets are derecognised only when the contractual rights to the cash flows from the asset expire orare settled, or when the limited liability partnership transfers the financial asset and substantially all the risksand rewards of ownership to another entity, or if some significant risks and rewards of ownership are retainedbut control of the asset has transferred to another party that is able to sell the asset in its entirety to anunrelated third party.Classification of financial liabilitiesFinancial liabilities and equity instruments are classified according to the substance of the contractualarrangements entered into. An equity instrument is any contract that evidences a residual interest in theassets of the limited liability partnership after deducting all of its liabilities.Basic financial liabilitiesBasic financial liabilities, including creditors, bank loans, loans from fellow group companies and preferenceshares that are classified as debt, are initially recognised at transaction price unless the arrangementconstitutes a financing transaction, where the debt instrument is measured at the present value of the futurepayments discounted at a market rate of interest. Financial liabilities classified as payable within one year arenot amortised.Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course ofbusiness from suppliers. Amounts payable are classified as current liabilities if payment is due within one yearor less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially attransaction price and subsequently measured at amortised cost using the effective interest method.Other financial liabilitiesDerivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financialinstruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered intoand are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognisedin profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and thehedge is a cash flow hedge.Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured atfair value through profit or loss. Debt instruments may be designated as fair value through profit or loss toeliminate or reduce an accounting mismatch or if the instruments are measured and their performanceevaluated on a fair value basis in accordance with a documented risk management or investment strategy.Derecognition of financial liabilitiesFinancial liabilities are derecognised when the limited liability partnership’s obligations expire or aredischarged or cancelled.
The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.Financial instruments are recognised in the limited liability partnership's statement of financial position whenthe limited liability partnership becomes party to the contractual provisions of the instrument.Financial assets and liabilities are offset and the net amounts presented in the financial statements whenthere is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a netbasis or to realise the asset and settle the liability simultaneously.Basic financial assetsBasic financial assets, which include debtors and cash and bank balances, are initially measured attransaction price including transaction costs and are subsequently carried at amortised cost using the effectiveinterest method unless the arrangement constitutes a financing transaction, where the transaction ismeasured at the present value of the future receipts discounted at a market rate of interest. Financial assetsclassified as receivable within one year are not amortised.Other financial assetsOther financial assets, including investments in equity instruments which are not subsidiaries, associates orjoint ventures, are initially measured at fair value, which is normally the transaction price. Such assets aresubsequently carried at fair value and the changes in fair value are recognised in profit or loss, except thatinvestments in equity instruments that are not publicly traded and whose fair values cannot be measuredreliably are measured at cost less impairment.Impairment of financial assetsFinancial assets, other than those held at fair value through profit and loss, are assessed for indicators ofimpairment at each reporting end date.Financial assets are impaired where there is objective evidence that, as a result of one or more events thatoccurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.If an asset is impaired, the impairment loss is the difference between the carrying amount and the presentvalue of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment lossis recognised in profit or loss.If there is a decrease in the impairment loss arising from an event occurring after the impairment wasrecognised, the impairment is reversed. The reversal is such that the current carrying amount does notexceed what the carrying amount would have been, had the impairment not previously been recognised. Theimpairment reversal is recognised in profit or loss.Derecognition of financial assetsFinancial assets are derecognised only when the contractual rights to the cash flows from the asset expire orare settled, or when the limited liability partnership transfers the financial asset and substantially all the risksand rewards of ownership to another entity, or if some significant risks and rewards of ownership are retainedbut control of the asset has transferred to another party that is able to sell the asset in its entirety to anunrelated third party.Classification of financial liabilitiesFinancial liabilities and equity instruments are classified according to the substance of the contractualarrangements entered into. An equity instrument is any contract that evidences a residual interest in theassets of the limited liability partnership after deducting all of its liabilities.Basic financial liabilitiesBasic financial liabilities, including creditors, bank loans, loans from fellow group companies and preferenceshares that are classified as debt, are initially recognised at transaction price unless the arrangementconstitutes a financing transaction, where the debt instrument is measured at the present value of the futurepayments discounted at a market rate of interest. Financial liabilities classified as payable within one year arenot amortised.Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course ofbusiness from suppliers. Amounts payable are classified as current liabilities if payment is due within one yearor less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially attransaction price and subsequently measured at amortised cost using the effective interest method.Other financial liabilitiesDerivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financialinstruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered intoand are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognisedin profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and thehedge is a cash flow hedge.Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured atfair value through profit or loss. Debt instruments may be designated as fair value through profit or loss toeliminate or reduce an accounting mismatch or if the instruments are measured and their performanceevaluated on a fair value basis in accordance with a documented risk management or investment strategy.Derecognition of financial liabilitiesFinancial liabilities are derecognised when the limited liability partnership’s obligations expire or aredischarged or cancelled.