For the year ending 31 March 2025 the limited liability partnership was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied to limited liability partnerships, relating to small entities.

These financial statements have been prepared and delivered in accordance with the special provisions within Part 15 of the Companies Act 2006, as applied to small limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, and the option not to file a profit and loss account has been taken.

The members acknowledge their responsibilities for complying with the requirements of the Act, as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including Section 1A and the Companies Act 2006.

The limited liability partnership is incorporated in the United Kingdom under the Limited Liability Partnership Act 2000. The address of the registered office is given on the limited liability partnership information page. The nature of the limited liability partnership’s operations and its principal activities are given in the members’ report.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value, and in accordance with Financial Reporting Council and the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships (issued January 2017).

The functional currency of Pengillys LLP is considered to be pounds sterling because that is the currency of the primary economic environment in which the limited liability partnership operates. These financial statements have been prepared using pounds sterling and rounded to the nearest whole pound.

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 amounts recoverable on contracts.

Fee income that is contingent on events outside the control of the firm is recognised in revenue when it is considered likely that the contingent event has or is likely to occur in the foreseeable future.

Intangible assets are stated in the balance sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives.

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

The LLP operates a defined benefit pension scheme which had a surplus of net assets in its latest independent actuarial review. The members consider that when the scheme is in defecit it more appropriate to account for the funding of any deficiency as and when the actuaries recommend the contributions to fund the deficit are to be paid. Thus any total net scheme surplus or deficit is not accounted for in the accounts. Instead, the contributions are charged in the profit and loss account when paid. This policy is not in accordance with United Kingdom Generally Accepted Accounting Practice but the members believe it more reasonably represents the financial commitments of its current members.

Where post retirement pension payments or similar are agreed for members or former member these are accrued either when agreed if on or after retirement or are accrued over the period in which the individual serves as a member following agreement of such entitlements. In respect of current members these charges are included in “Members remuneration charged as an expense” in the profit and loss account.

The amount provided is included in “Loans and other debts due to members” while the member remains a member of the LLP. Upon retirement the outstanding liability is transferred to creditors and disclosed as post retirement payments to former members.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the limited liability partnership intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.