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ATLAS ADVISORY LLP
Notes to the Financial Statements
For the Period Ended 30 September 2025
2.Accounting policies (continued)
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Division and distribution of profits
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Profits are divided among the members in accordance with the terms of the LLP agreement. The allocation of profits is recognised only when it becomes unconditional under that agreement. Amounts that are discretionary or dependent on future events are not recognised as liabilities until the LLP becomes obligated to make the payment.
Members’ profit shares are treated as distributions and are accounted for as movements in members’ interests rather than as expenses in the profit and loss account. Profit allocations that remain unpaid at the year end are included within members’ interests as amounts due to members.
Members’ remuneration that is fixed or guaranteed under the LLP agreement, and which is not dependent on the LLP’s profits, is recognised as an expense in the profit and loss account in the period to which it relates.
Drawings made by members are treated as advances against their profit entitlement for the period and are deducted from members’ interests. Distributions are recognised when paid or when the LLP becomes legally obliged to make the payment.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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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 are highly liquid investments 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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