Limited Liability Partnership registration number OC378101 (England and Wales)
OGLETREE DEAKINS LLP
(FORMERLY OGLETREE DEAKINS INTERNATIONAL LLP)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
OGLETREE DEAKINS LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
J Gerak
C M Keen
S J McMenemy
E Washko
LLP registration number
OC378101
Registered office
St Paul's House
8-10 Warwick Lane
6th Floor
London
England
EC4M 7BP
Auditor
Gravita II LLP
Aldgate Tower
2 Leman Street
London
E1 8FA
OGLETREE DEAKINS LLP
CONTENTS
Page
Members' report
1
Independent auditor's report
2 - 4
Statement of comprehensive income
5
Statement of financial position
6
Reconciliation of members' interests
7 - 8
Statement of cash flows
9
Notes to the financial statements
10 - 20
OGLETREE DEAKINS LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The members present their annual report and the audited financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of Ogletree Deakins LLP ('the LLP') is to provide legal services.

Branches outside the United Kingdom

The LLP has branches in Paris and Berlin.

Members' drawings, contributions and repayments

Certain members are remunerated from the profits of the LLP and are required to make their own provision for pensions and other benefits. Members draw a proportion of their profit shares monthly during the year in which it is made.

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

J Gerak
C M Keen
S J McMenemy
E Washko
(Appointed 29 January 2024)
Statement of members' responsibilities

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law, as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Under company law, as applied to LLPs, the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the LLP and of the profit or loss of the LLP for that financial year.

 

In preparing these financial statements, the members are required to:

 

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP’s transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to enable them to ensure that the financial statements comply with the Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008. They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Approved by the members on 13 February 2025 and signed on behalf by:
13 February 2025
S J McMenemy
Designated Member
OGLETREE DEAKINS LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OGLETREE DEAKINS LLP
- 2 -
Opinion

We have audited the financial statements of Ogletree Deakins LLP (the 'limited liability partnership') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the limited liability partnership’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the LLP's ability to continue as a going concern.

 

Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

OGLETREE DEAKINS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OGLETREE DEAKINS LLP
- 3 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the statement of member's responsibilities, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the members are responsible for assessing the limited liability partnership's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

OGLETREE DEAKINS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OGLETREE DEAKINS LLP
- 4 -

We assessed the susceptibility of the LLP’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the members and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

 

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

An opinion on the financial statements of the company as at 31 December 2022 was not expressed as the company took exemption from an audit. The prior period figures are unaudited.

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Filiz Zekia FCCA (Senior Statutory Auditor)
For and on behalf of Gravita II LLP, Statutory Auditor
Chartered Accountants
Aldgate Tower
2 Leman Street
London
E1 8FA
13 February 2025
OGLETREE DEAKINS LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2023
2022
Notes
£
£
Turnover
3
14,746,482
12,556,909
Administrative expenses
(11,186,319)
(9,281,889)
Other operating income
11,714
-
Profit for the financial year before members' remuneration and profit shares
3,571,877
3,275,020
Members' remuneration charged as an expense
7
(3,527,161)
(2,922,620)
Profit for the financial year available for discretionary division among members
44,716
352,400

The income statement has been prepared on the basis that all operations are continuing operations.

OGLETREE DEAKINS LLP
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 6 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
887,664
665,770
Current assets
Debtors
9
5,755,454
5,664,847
Cash at bank and in hand
2,429,988
2,690,686
8,185,442
8,355,533
Creditors: amounts falling due within one year
10
(8,754,703)
(8,931,858)
Net current liabilities
(569,261)
(576,325)
Total assets less current liabilities and net assets attributable to members
318,403
89,445
Represented by:
Members' other interests
Members' capital classified as equity
184,242
-
Other reserves classified as equity
134,161
89,445
318,403
89,445
The financial statements were approved by the members and authorised for issue on 13 February 2025 and are signed on their behalf by:
13 February 2025
S J McMenemy
Designated member
Limited Liability Partnership registration number OC378101 (England and Wales)
OGLETREE DEAKINS LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other reserves
Total
Other amounts
Total
Total
2023
£
£
£
£
£
£
Members' interests at 1 January 2023
-
89,445
89,445
-
-
89,445
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
-
-
3,527,161
3,527,161
3,527,161
Profit for the financial year available for discretionary division among members
-
44,716
44,716
-
-
44,716
Members' interests after profit and remuneration for the year
-
134,161
134,161
3,527,161
3,527,161
3,661,322
Drawings on account and distributions of profit
-
-
-
(3,527,161)
(3,527,161)
(3,527,161)
Other movements
184,242
-
184,242
-
-
184,242
Members' interests at 31 December 2023
184,242
134,161
318,403
-
-
318,403
OGLETREE DEAKINS LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Other reserves
Other amounts
Total
Total
2022
£
£
£
£
Members' interests at 1 January 2022
(262,955)
-
-
(262,955)
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
2,922,620
2,922,620
2,922,620
Profit for the financial year available for discretionary division among members
352,400
-
-
352,400
Members' interests after profit and remuneration for the year
89,445
2,922,620
2,922,620
3,012,065
Drawings on account and distributions of profit
-
(2,922,620)
(2,922,620)
(2,922,620)
Members' interests at 31 December 2022
89,445
-
-
89,445
OGLETREE DEAKINS LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
15
3,412,534
4,624,469
Payments to members
(3,527,161)
(2,922,620)
Net cash (outflow)/inflow from operating activities
(114,627)
1,701,849
Investing activities
Purchase of tangible fixed assets
(330,313)
(14,834)
Net cash used in investing activities
(330,313)
(14,834)
Financing activities
Capital introduced by members (classified as debt or equity)
184,242
-
Net cash generated from financing activities
184,242
-
Net (decrease)/increase in cash and cash equivalents
(260,698)
1,687,015
Cash and cash equivalents at beginning of year
2,690,686
1,003,671
Cash and cash equivalents at end of year
2,429,988
2,690,686
OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Limited liability partnership information

Ogletree Deakins LLP is a limited liability partnership incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the LLP’s registered office is St Paul's House, 8-10 Warwick Lane, 6th Floor, London, EC4M 7BP, United Kingdom. The principal activities are set out in the Members’ Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

 

The financial statements have been prepared under the historical cost convention.

1.2
Going concern

The designated members have assessed the Balance Sheet and likely future cash flow at the date of approving these financial statements. At the balance sheet date, the LLP has net assets of £318,403 (2022: £89,445) and made profit before members’ remuneration and profit shares of £3,571,877 (2022: £3,275,020, The members have a reasonable expectation that the LLP has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements.

At the time of signing, the continued expansion of client base and current funds in the bank, the members do not consider any material uncertainty exists that would impact the LLP’s ability to continue as a going concern. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

1.3
Turnover

Turnover represents amounts chargeable to clients for professional services provided during the year, inclusive of direct expenses incurred but excluding value added tax. Revenue is recognised for all work performed in the year where the recoverability of the consideration can be assessed with reasonable certainty except where the consideration is contingent. Where revenue cannot be assessed with reasonable certainty or is contingent on a future event, no turnover is recognised.

Unbilled turnover on individual client assignments, or revenue recognised in excess of payments received on account, is included in accrued income within debtors.

1.4
Members' participating interests

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, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, and the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships. A member's participation right results in liability unless the right to any payment is discretionary on the part of the LLP.

 

Amounts subscribed or otherwise contributed by members, for example, members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.

OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -

Where profits are divided as they arise, so the LLP does not have an unconditional right to refuse payment, the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense in the Statement of Comprehensive Income in the relevant year. To the extent that they remain unpaid at the year end, they are shown as liabilities in the Balance Sheet.

 

Conversely, where profits are divided only after a decision by the LLP or its representative, so that the LLP has an unconditional right to refuse payment, such profits are classed as an appropriation of equity rather than as an expense. They are therefore shown as a residual amount available for discretionary division among members in the Statement of Comprehensive Income and are equity appropriations in the Balance Sheet.

Other amounts applied to members, for example, remuneration paid under an employment contract, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment.

 

Amounts due to members that are classified as equity are shown in the Balance Sheet within 'Members’ other interests'. In the event of the winding up of the LLP then any surplus of assets of the LLP over its liabilities remaining at the conclusion of the winding up after payment of all monies due to the creditors of the LLP and all expenses of the winding up and repayment to all Partners of their capital contributions shall be payable by the liquidator in line with the LLP's members agreement.

1.5
Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Land and buildings
depreciated over the life of the lease
Fixtures and fittings
5 - 7 years straight line

Land and buildings consist wholly of short term leasehold property.

 

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 Statement of Comprehensive Income.

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ FRS102 to all of its financial instruments.

 

Financial instruments are recognised in the limited liability partnership's Balance Sheet when the 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 when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred 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 present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

Non-financial assets

At each balance sheet date, the LLP reviews its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the LLP estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not 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 of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Taxation

The taxation payable on the partnership’s profits is the personal liability of the members, although payment of such liabilities is administered by the partnership on behalf of its members. Consequently, neither partnership taxation nor related deferred taxation is accounted for in these financial statements.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits and post retirement payments to members

The entity sponsors a defined contribution pension scheme and makes mandated contributions to a statutory insurance program. The pension charge represents the amounts payable by the entity to the programs in respect of the period.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.12
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.13
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

 

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Comprehensive Income.

1.14

Remuneration of members

Certain members can be remunerated out of the profits of the LLP (and can also be remunerated separately out of the profits of the associated US firm in their capacity as members in that firm) and are required to make their own provision for pensions and other benefits. Certain members, as designated from time to time in a separate agreement between such members and the US firm, hold such portion of the interest allocated to them in the profits of the LLP for the benefit of the members of the US firm.

 

Unallocated profits and losses are included in other reserves within members’ other interests.

1.15

Capital

Under the terms of the Members’ Agreement relating to the LLP, the members of the LLP are required to make capital contributions to the LLP as determined from time to time by the Management Committee.

OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The designated members do not consider that any critical judgements have been made in the application of the LLP's accounting policies and no key sources of estimation uncertainty have been identified that have a significant risk of causing a material misstatement to the carrying amount of assets and liabilities within the financial year.

 

Key sources of estimation uncertainty

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

 

Work in progress

 

The valuation of work in progress is assessed with reference to the expected level of recovery post year end.  These estimates are based on a detailed assessment of historic trends together with the level of actual recoverability in the period subsequent to the year end.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Turnover
14,746,482
12,556,909
2023
2022
£
£
Turnover analysed by geographical market
UK
442,394
389,264
Non-UK
14,304,088
12,167,645
14,746,482
12,556,909
2023
2022
£
£
Other significant revenue
Grants received
11,714
-

97.0% of the entity's turnover (2022: 96.9%) is attributable to geographical markets outside the United Kingdom.

 

OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
156,390
(223,825)
Government grants
(11,714)
-
Depreciation of owned tangible fixed assets
108,419
96,058
Operating lease charges
1,315,696
1,277,240
5
Auditor's remuneration
2023
2022
Fees payable to the LLP's auditor and associates:
£
£
For audit services
Audit of the financial statements of the LLP
45,000
-
For other services
All other non-audit services
6,600
-
6
Employees

The average number of persons (including members) employed by the partnership during the year was:

2023
2022
Number
Number
Berlin
19
16
London
17
16
Paris
23
23
Total
59
55

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,895,590
1,936,838
Social security costs
504,053
403,814
Pension costs
118,612
104,292
2,518,255
2,444,944
OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
7
Members' remuneration
2023
2022
Number
Number
Average number of members during the year
15
13
2023
2022
£
£
Profit attributable to the member with the highest entitlement
596,171
580,692
Average members' remuneration
235,144
251,924
2023
2022
Members' remuneration comprises:
£
£
Remuneration under participation rights
3,527,161
2,922,620
8
Tangible fixed assets
Land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023
568,003
716,048
1,284,051
Additions
152,439
177,892
330,331
Exchange adjustments
(7)
(21)
(28)
At 31 December 2023
720,435
893,919
1,614,354
Depreciation
At 1 January 2023
131,293
486,988
618,281
Depreciation charged in the year
53,195
55,224
108,419
Exchange adjustments
(2)
(8)
(10)
At 31 December 2023
184,486
542,204
726,690
Carrying amount
At 31 December 2023
535,949
351,715
887,664
At 31 December 2022
436,710
229,060
665,770
OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,272,141
3,458,703
Other debtors
2,458
225,236
Prepayments and accrued income
2,073,377
1,585,841
5,347,976
5,269,780
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
407,478
395,067
Total debtors
5,755,454
5,664,847
10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
94,574
-
Other taxation and social security
384,883
282,586
Other creditors
8,113,224
8,579,555
Accruals and deferred income
162,022
69,717
8,754,703
8,931,858

 

Included in other creditors are amounts owed to related parties of £7,881,362 (2022: £8,369,390) that are interest free and unsecured.

 

Whilst the loan amounts owed to related parties have been classed as creditors falling due within one year, the members note there is no intention for the amounts to be called for repayment within this period unless the LLP has sufficient funds to do so.

11
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,612
104,292

The limited liability partnership operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.

OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

 

Building rent lease

2023
2022
£
£
Within one year
1,213,301
1,002,898
Between two and five years
6,171,452
4,529,065
In over five years
1,239,314
2,635,188
8,624,067
8,167,151

Other financial commitments include motor vehicles and office equipment falling due within one year of £41,095 (2022: £23,827; within one and five years £75,470 (2022: £55,240) totalling £116,565 (2022: £79,067).

13
Related party transactions

There are regular transactions between the UK firm and its associated firm in the US, a firm with common ownership. Such transactions may include the provision and repayment of working capital funding and charges for shared overheads. At 31 December 2023, amounts totaling £7,881,362 (2022: £8,369,390) were owed by the UK LLP to the US firm as a result of these transactions.

14
Ultimate controlling party

The ultimate controlling party is considered to be the Executive Committee of the LLP, all of whose members are Registered Foreign Lawyers who reside in the United States ànd thus have made management decisions concerning the LLP largely from the United States.

15
Cash generated from operations
2023
2022
£
£
Profit after taxation
3,571,877
3,275,020
Adjustments for:
Depreciation and impairment of tangible fixed assets
108,419
96,058
Movements in working capital:
Increase in debtors
(90,607)
(1,481,253)
(Decrease)/increase in creditors
(177,155)
2,734,644
Cash generated from operations
3,412,534
4,624,469

In the prior year, members capital had been included within other creditors. In the current year, this has been corrected to show as members capital. Consequently in the cashflow statement, this shows the full balance in financing activities in the current year.

OGLETREE DEAKINS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
16
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,690,686
(260,698)
2,429,988
2023-12-312023-01-01falsefalseCCH SoftwareCCH Accounts Production 2024.310falseOC3781012023-01-012023-12-31OC378101bus:PartnerLLP12023-01-012023-12-31OC378101bus:PartnerLLP22023-01-012023-12-31OC378101bus:PartnerLLP32023-01-012023-12-31OC378101bus:PartnerLLP42023-01-012023-12-31OC3781012023-12-31OC3781012022-01-012022-12-31OC378101bus:LimitedLiabilityPartnershipLLP2023-01-012023-12-31OC378101bus:FRS1022023-01-012023-12-31OC378101bus:Audited2023-01-012023-12-31OC378101bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP