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LANTERN RECOVERY LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Lantern Recovery LLP ("the LLP") is a limited liability partnership, incorporated in England and Wales. Its registered office is Lantern House, 39 - 41 High Street, Potters Bar, Hertfordshire, EN6 5AJ.
The LLP's principal activity continues to be that of property investment.
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 judgment in applying the LLP's accounting policies (see note 3).
The following principal accounting policies have been applied:
The LLP is the parent undertaking of a small group and as such is not required by The Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008 to prepare group accounts. These financial statements therefore present information about the LLP as an individual undertaking and not about its group.
Revenue is measured at the fair value of consideration received or receivable and represents the amount receivable for services rendered, net of returns, discounts and rebates allowed by the LLP and value added taxes.
The LLP’s only source of revenue is rental income from investment properties let to connected entities and third parties. Sales invoices are raised monthly in advance for services provided. Revenue is recognised in the accounting period in which the services are rendered. Sales are made with credit terms. The element of financing is deemed immaterial and disregarded in the treatment of revenue.
The LLP meets its day-to-day working capital requirements through careful management of working capital positions. The LLP’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the LLP should be able to operate without other third party support. After making enquiries, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. The LLP therefore continues to adopt the going concern basis in preparing its financial statements.
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LANTERN RECOVERY LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following annual 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.
Investment properties for which fair values can be measured reliably without undue cost or effort on an ongoing basis are measured at fair value annually, with the surplus or deficit being recognised in the profit and loss account.
Investment properties are not depreciated. This treatment is contrary to the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008, which states that investment properties should be depreciated but is, in the opinion of the members, necessary in order to give a true and fair view of the financial position of the LLP.
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 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.
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LANTERN RECOVERY LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
All borrowing costs are recognised in the Profit and Loss account in the year in which they are incurred.
The LLP agreement determines the amount of profit to be treated as members' remuneration. This profit is treated as allocated. All profits are automatically allocated and realised in the statement of comprehensive income as members' remuneration charged as an expense by reference to the pre-determined profit share mechanisms. Allocated profit is included within 'loans and other debts due to members' on the Balance Sheet.
Drawings are treated as payments on account of profit allocation and are subject to sufficent cash availability. Any Drawings in excess of total allocated profits would be included within 'amounts due from members' within other debtors. The capital requirements of the LLP are determined by the members and are reviewed regularly. No interest is paid on capital. On leaving the partnership, a member's capital is repaid without reasonable delay.
Taxation payable on the profits of the LLP is the personal liability of the members. A retention from profits may be made to fund future payments of taxation on the members' behalf. The retention is reflected in loans and other debts due to members.
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LANTERN RECOVERY LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the LLP a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Profit and Loss Account in the year that the LLP becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet. Critical judgments in applying the entity’s accounting policies No critical accounting judgments have had to be made by management in preparing these financial statements. Critical accounting estimates and assumptions The members’ assess the market valuation of investment properties annually. Market valuation is based upon the members’ knowledge and experience of the property market in which the LLP operates, recent market transactions, current rental yields and valuations performed by financial institutions on borrowings taken out by connected entities which are secured on investment properties held by the LLP. The members’ annually assess whether any investment property is impaired. Impairment reviews consist of assessing a number of factors including impairment due to market conditions that may only be transient or factors that indicate permanent impairment. Impairment losses are recognised in the profit and loss account.
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LANTERN RECOVERY LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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LANTERN RECOVERY LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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LANTERN RECOVERY LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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