GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
Gullands LLP is a limited liability partnership incorporated in England and Wales in the United Kingdom. The address of the registered office is 16 Mill Street, Maidstone, Kent, ME15 6XT.
The financial statements are presented in pound sterling, which is the functional currency of the partnership, rounded to the nearest £1.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the LLP's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Designated Members have considered the funding position, and having additionally considered the planned development of the business along with support from the Members, do not deem there to be any material uncertainty over going concern. Accordingly the financial statements have been prepared on the going concern basis which assumes that the LLP will continue in operation for the foreseeable future.
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
2.Accounting policies (continued)
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
2.Accounting policies (continued)
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 the Statement of comprehensive income.
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Work in progress at the balance sheet date has been calculated using Financial Reporting Standard 102 principles.
Work in progress is valued at the amount recoverable on the basis of time elapsed on client assignments as a multiple of staff charge rates, less any provisions for non-recoverable amounts.
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The LLP has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the LLP's Balance sheet when the LLP becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The LLP's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the LLP after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
2.Accounting policies (continued)
discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the LLP transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the LLP will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the LLP's contractual obligations expire or are discharged or cancelled.
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
Loans and other debts due to members may be further analysed as follows:
Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.
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GULLANDS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
The entity operates a defined contribution scheme for the benefit of its employees. Contributions are expensed as they become payable.
The LLP is also a member of the With Profits Section of the Cheviot Trust Pension Scheme. This is a multi-employer scheme and was originally set up by the Cheviot Trust as a defined contribution scheme. The With Profits Section closed to new contributions in December 2002. In July 2014, new legislation re-classified the scheme as a cash balance scheme which meant it became subject to scheme specific funding requirements under the Pensions Act 2004. This means it is now effectively treated as a defined benefit scheme in the financial statements. With Profits Employers have a contractual obligation to fund any deficit in the With Profits Section if the Trustee considers it appropriate to require contributions. The most recent comprehensive Actuarial Valuation took place on 31 December 2020. This showed no deficit and the valuation was finalised on the basis that no contributions were required from employers. The actuarial report at 31 December 2021 also showed no deficit but the funding position deteriorated significantly during 2022 and the actuarial report at 31 December 2022 shows a deficit. The LLP has a 0.022% share in the With Profits Section of the Cheviot Trust Pension Scheme. At 31 March 2024, the total assets of the Scheme were valued at £60.3m (31 December 2023: £62.9m) and the total estimated liabilities excluding expenses were £64.6m (31 December 2023: £67.7m), giving an overall deficit of £4.3m (31 December 2023: £4.8m). The LLP's share of the deficit is therefore £946 (2023: £1,056) and is included in the balance sheet under provisions and recognised in the profit and loss account as an expense. The principal actuarial assumptions used are as follows: Discount rate: 4.80% p.a. (31 December 2023: 4.55% p.a.) RPI inflation: 3.65% p.a. (31 December 2023: 3.45% p.a.) CPI inflation: 2.65% p.a. (31 December 2023: 2.45% p.a.) Pension increases - fixed 3%: 3.00% p.a (31 December 2023: 3.00% p.a.) Pension increases - CPI up to 5%: 2.65% p.a. (31 December 2023: 2.45% p.a.) Pension increases - CPI up to 3%: 2.20% p.a. (31 December 2023: 2.10% p.a.) Mortality: 106% males / 99% females of S2PA tables - (CMI 2022) with a 1.5% long term rate and initial addition of 0.3% (31 December 2023: 106% males / 99% females of S2PA tables - (CMI 2021) with a 1.5% long term rate and initial addition of 0.3%) Expenses: No allowance (31 December 2023: No allowance)
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