| |
|
|
|
|
| 2. |
Accounting Policies |
|
|
|
Statement of compliance |
|
The financial statements of the Limited Liability Partnership for the financial year ended 31 March 2025 have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland", applying Section 1A of the Standard, issued by the Financial Reporting Council and in accordance with the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, as amended. |
|
|
|
Basis of preparation |
|
The financial statements have been prepared under the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Limited Liability Partnership's financial statements. |
|
|
|
Cash flow statement |
|
The Limited Liability Partnership has availed of the exemption in Section 1A, FRS 102 from the requirement to prepare a Statement of Cash Flows because it is classified as a small entity. |
|
|
|
Turnover |
|
Turnover comprises amounts invoiced by the Limited Liability Partnership exclusive of value added tax. |
|
|
|
Members' remuneration |
|
Members' remuneration is treated as a charge against profits. It includes profits that are automatically divided between members by virtue of the members' agreement. A member's share in the profit and loss for the financial year is accounted for as an allocation of profits. |
|
|
| |
|
|
|
|
|
Tangible fixed assets and depreciation |
|
Tangible fixed assets are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible fixed assets, less their estimated residual value, over their expected useful lives as follows: |
|
|
| |
|
Long leasehold property |
- |
4% Straight line |
| |
|
Plant and machinery |
- |
20% Straight line |
|
|
| |
|
|
|
|
|
Goodwill |
|
Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets when they were acquired. Purchased goodwill is capitalised in the balance sheet and amortised on a straight line basis over its economic useful life of 10 years, which is estimated to be the financial period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business. |
|
|
| |
|
|
|
|
|
Trade and other debtors |
|
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts. |
|
|
| |
|
|
|
|
|
Cash and cash equivalents |
|
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Abbreviated Balance Sheet bank overdrafts are shown within Creditors. |
|
|
| |
|
|
|
|
|
Borrowing costs |
|
Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. |
|
|
| |
|
|
|
|
|
Trade and other creditors |
|
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. |
|
|
| |
|
|
|
|
|
Foreign currencies |
|
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Transactions, during the financial year, which are denominated in foreign currencies are translated at the rates of exchange ruling at the date of the transaction. The resulting exchange differences are dealt with in the profit and loss account. |
|
|
| |
|
|
|
|
|
Pensions |
|
The Limited Liability Partnership operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Limited Liability Partnership. Annual contributions payable to the pension scheme are charged to the Profit and Loss Account in the financial period to which they relate. |
|
|