Registered number: OC312006
Cozen O'Connor LLP
Unaudited
Financial statements
Information for filing with the registrar
For the year ended 31 December 2023
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Cozen O'Connor LLP
Registered number: OC312006
Balance sheet
As at 31 December 2023
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Debtors: amounts falling due within one year
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Creditors: Amounts Falling Due Within One Year
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Total assets less current liabilities
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Loans and other debts due to members within one year
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The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small LLPs regime.
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
The members acknowledge their responsibilities for complying with the requirements of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, with respect to accounting records and the preparation of financial statements.
The financial statements have been delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime.
The entity has opted not to file the statement of comprehensive income in accordance with the provisions applicable to entities subject to the small LLPs regime.
The financial statements were approved and authorised for issue by the members and were signed on their behalf on 1 October 2024.
The notes on pages 3 to 6 form part of these financial statements.
Page 1
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Cozen O'Connor LLP
Reconciliation of members' interests
For the year ended 31 December 2023
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EQUITY
Members' other interests
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DEBT
Loans and other debts due to members less any amounts due from members in debtors
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Balance at 1 January 2022
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Members' remuneration charged as an expense
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Loss for the year available for discretionary division among members
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Members' interests after profit for the year
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Amounts introduced by members
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Drawings on account and distribution of profit
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Balance at 31 December 2022
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Loss for the year available for discretionary division among members
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Members' interests after profit for the year
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Balance at 31 December 2023
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There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.
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Page 2
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Cozen O'Connor LLP
Notes to the financial statements
For the year ended 31 December 2023
Cozen O'Connor LLP is a limited liability partnership incorporated in England & Wales. The registered office address is New London House, 6 London Street, London, EC3R 7LP.
The limited liability partnership's principal activity is the provision of a full range of commercial legal services and advice from offices in England.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the LLP's accounting policies.
The following principal accounting policies have been applied:
The accounts have been prepared on a going concern basis despite the LLP reporting a loss of £65,604 (2022: £390,334) for the year ended 31 December 2023. Included within Creditors is an amount of £128,650 (2022: £177,827) due to Cozen O'Connor PC. The LLP is reliant upon the continued financial support of Cozen O'Connor PC as per note 6.
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Foreign currency translation
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Functional and presentation currency
The LLP's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Page 3
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Cozen O'Connor LLP
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Turnover comprises revenue recognised by the LLP in respect of legal services supplied during the
year, exclusive of Value Added Tax and trade discounts.
Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration which represents amounts chargeable to clients, including expenses and disbursements but excluding Value Added Tax.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed.
Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.
Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.
Interest income is recognised in profit or loss using the effective interest method.
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Division and distribution of profits
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A division of profits is the mechanism by which the profits of an LLP become a debt due to members. A division may be automatic or discretionary, may relate to some or all of the profits for a financial period and may take place during or after the end of a financial period.
An automatic division of profits is one where the LLP does not have an unconditional right to avoid making a division of an amount of profits based on the members' agreement in force at the time, whereas a discretionary division of profits requires a decision to be made by the LLP, which it has the unconditional right to avoid making.
The LLP divides profits automatically. Automatic divisions of profits are recognised as 'Members' remuneration charged as an expense in .
In the event of the LLP making losses, the loss is recognised as a credit amount of 'Members' remuneration charged as an expense where it is automatically divided or as a debit within equity under 'Other reserves' if not divided automatically.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Page 4
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Cozen O'Connor LLP
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Short term creditors are measured at the transaction price.
The LLP only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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Members' participating interests
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Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).
Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.
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 are classified as equity are shown within 'Members' other interests'. Amounts recoverable from members are presented as debtors and 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.
Profits of the LLP shall be apportioned amongst the members in such proportions as may from time to time be determined by the managing member of the LLP. The determination of the timing and amount of distributions of profits shall be made solely by the managing member. Losses of the LLP shall be shared in the same proportions as profits.
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 to members' to the extent they exceed debts due from a specific member.
Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other division of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment. Amounts payable to members under employment contracts and unavoidable interest on members capital are charged to 'members remuneration charged as an expense' in the relevant year.
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The entity has no employees.
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Page 5
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Cozen O'Connor LLP
Notes to the financial statements
For the year ended 31 December 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Related party transactions
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The Members of the LLP are also Members of Cozen O'Connor PC that is registered in the United States of America. Cozen O'Connor PC provides financial support to Cozen O'Connor LLP.
During the year, Cozen O'Connor PC made net payments of £49,177 (2022: £2,006,336) to Cozen O'Connor LLP. At the year end the amount outstanding was £128,650 (2022: £177,827) and is included within Creditors as 'Amounts owed to group undertakings'. No interest was charged on this loan.
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The LLP is under the control of its Designated Member.
Page 6
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