|
Registered number:
For the Year Ended
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Information
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Contents
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Members' Report
For the Year Ended 31 March 2026
The members present their annual report together with the audited financial statements of Lincoln Private Investment Office LLP (the "LLP") for the year ended 31 March 2026.
Principal activities and review of the business
Lincoln Private Investment Office LLP ("Lincoln") is a private investment office, offering our clients truly independent wealth management services. We were established in December 2013 and have been managing investments for clients since June 2014. Lincoln’s aim is to deliver exceptional service and investment performance to our clients. Our future goals remain the same as our starting goals, to look after our current clients as well as we possibly can.
Our primary focus is on investment management, centred on Discretionary and Advisory services. Discretionary Portfolios are high conviction, individually asset allocated portfolios with exposure to equities, bonds and absolute return strategies, which are managed centrally as a firm. To complement the Discretionary service and provide diversification from public markets, we offer access to intelligent, interesting Alternative Investments on an Advisory basis. We also offer Private Office Services so we can help clients with a wider range of financial requirements. We are pleased with the progress across all the areas of the business over the course of the year. Assets under management, across Discretionary and Advisory portfolios, increased significantly during the year by 31%. This was driven both by new net assets from existing and new clients, and by strong investment performance, particularly from our Discretionary portfolios. Consequently, our ongoing management fees had a substantial year-on-year increase. As expected, Advisory upfront fees were lower than the previous financial year, which had been exceptional. In total, our fees have increased 16%. Following the variation of our regulatory permissions to include Wealth Planning advice, we have established this offering for clients. This has been a fantastic additional service and has added huge value to client relationships. A member left during the year and was paid £400,000, as explained in note 15 to these financial statements. This payment was made to acquire that member's voting rights, and was the full and final settlement of that member's fixed and current account, and therefore no further amounts were owed to that member at the year end. In addition, 19 new members were admitted during the year, which created significant capital contributions of £2.13m, which will be reinvested as part of our growth strategy. We welcome our new members and look forward to them joining us on our journey to enhance our offerings both to existing clients and new. The Statement of Comprehensive income shows the total profit of £3,537,191 being included as Members' remuneration, as required by accounting standards. Fixed drawings made by executive members, which include bonuses and profit shares, totalled £3,069,800 (2025: £2,655,190), leaving a residual profit of £467,391 (2025: £661,931) which is automatically allocated to all members based on their participation rights.
There have been no changes in the objectives since the last annual report.
Designated Members
R Elder and R Robbins were designated members of the LLP throughout the period.
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Members' Report (continued)
For the Year Ended 31 March 2026
Members' capital and interests
Each member's subscription to the capital of the LLP is determined by their share of the profit and is repayable following retirement from the LLP.
Details of changes in members' capital in the year ended 31 March 2026 are set out in the financial statements.
Members are remunerated from the profits of the LLP and are required to make their own provision for pensions and other benefits. Profits are allocated and divided between members after finalisation of the financial statements. Executive Members draw a proportion of their profit shares monthly during the year in which it is made, with the balance of profits being distributed after the year, subject to the cash requirements of the business.
Disclosure required under the Investment Firms Prudential Regime
The following section does not form part of the statutory members' report and has not been independently verified by the firm's auditors. Background Lincoln Private Investment Office LLP is required to make annual disclosures in accordance with MIFIDPRU 8. Lincoln is a SNI firm and its core business involves providing discretionary and advisory services to retail and professional clients. Risk Management Objectives The Executive Committee is the governing body of the Firm and, as such, is ultimately responsible for the application of a robust internal risk management regime. The Executive Committee is aware of the potential harms to clients, market and the Firm arising from its business activities, principally those being related to the advisory and investment management services Lincoln provides to clients. In order to manage risks, the Executive Committee receives regular management information on the Firm’s financial and operational performance. In addition, the Executive Committee continuously monitors and, if necessary, enhances, the Firm’s Business Model, directs the Internal Capital Adequacy and Risk Assessment (‘ICARA’) process and receives other significant regulatory intelligence which, in aggregate, provide the requisite information to identify trends and issues particularly in relation to: 1. The adequacy of its own funds; and 2. The adequacy of its liquid resources enabling the firm to meet its liabilities as they fall due. In each of these areas the Executive Committee’s approach is risk averse in order to ensure that the Firm has sufficient capital and liquidity to remain in business. To this end, Lincoln monitors its actual and near-term capital and liquidity positions on a monthly basis and carries out stress testing of its medium-term financial plans as part of its ICARA process in order to validate the adequacy of its forecast capital and liquidity resources. Governance Arrangements The partners of Lincoln recognise and accept that the Executive Committee, as the governing body of the Firm, has responsibility for the implementation of governance arrangements that assure its effective and prudent management. Lincoln considers that the existing arrangement whereby the Executive Committee meets quarterly satisfies this requirement. Whilst the Executive Committee readily acknowledges its collective risk management responsibility, it should be noted that the partners are also held accountable for specific areas of delivery under the Senior Managers and Certification Regime. The Executive Committee implements its collective responsibility through the policies and procedures that it approves and cascades to the employees of Lincoln. The implementation of these policies and procedures not only protects the reputation of the Firm but also serves to promote market integrity and the interests of LPIO clients. The effectiveness and accuracy of their execution is validated by ongoing compliance monitoring which either validates their successful practical application or identifies failures that can be promptly remediated. The Executive Committee frequently reviews and updates the Firm’s harms register, and it carries out an extensive ICARA process at least annually.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Members' Report (continued)
For the Year Ended 31 March 2026
Remuneration Lincoln is a MIFID investment firm, authorised by the Financial Conduct Authority (‘FCA’) to carry on the regulated activities of dealing in investments as agent, advising on investments, managing investments and arranging deals in investments. A consequence of its regulatory status is that the Firm must comply with the relevant provisions of the MIFIDPRU Remuneration Code set out in SYSC 19g of the FCA Handbook, a key element of which is that its remuneration practices are consistent with responsible risk management. Lincoln’s Approach to Remuneration Lincoln remunerates its employees through payment of fixed and variable remuneration. The levels of fixed remuneration are determined by the Executive Committee and relate to basic wages and salaries plus proportionate pension contributions. In setting levels of fixed remuneration for particular categories of employee, it is the partners’ intention that the amounts paid should properly reflect the complexity and responsibility of the roles performed and be consistent with the rates of pay for similar positions in peer group competitor firms. Lincoln operates a variable remuneration scheme in the form of a staff bonus pool that is intended to incentivise superior performance across the business without creating a conflicting motivation for reckless or inappropriate behaviour. Lincoln defines ‘variable remuneration’ as non-contractual payments or provision of benefits made directly to Lincoln employees. All employees are eligible to receive variable remuneration, subject to acceptable individual performance and the performance of the firm. The levels of variable remuneration paid are determined by the Executive Committee. Payment of variable remuneration is made in cash and is discretionary for all employees. Lincoln does not guarantee payment of variable remuneration and it is Lincoln’s policy that no variable remuneration is paid if it would inappropriately dilute the Firm’s liquid or capital resources.
Members' responsibilities statement
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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) 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 period.
In preparing these financial statements, the members are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
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 Companies Act 2006 (as applied by 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.
The members are responsible for the maintenance and integrity of the LLP and financial information included on the LLP's
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Members' Report (continued)
For the Year Ended 31 March 2026
website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Disclosure of information to auditors
Each of the persons who are members at the time when this Members' Report is approved has confirmed that:
∙so far as that member is aware, there is no relevant audit information of which the LLP's auditors are unaware, and
∙that member has taken all the steps that ought to have been taken as a member in order to be aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.
Auditors
The auditors, Hurst Accountants Limited, have indicated their willingness to continue in office. The Designated members will propose a motion re-appointing the auditors at a meeting of the members.
This report was approved by the members and signed on their behalf by:
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Independent Auditors' Report to the Members of Lincoln Private Investment Office LLP
We have audited the financial statements of Lincoln Private Investment Office LLP (the 'LLP') for the year ended 31 March 2026, which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Members' Interests and the related notes, including a summary of 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 LLP'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.
Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Independent Auditors' Report to the Members of Lincoln Private Investment Office LLP (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Independent Auditors' Report to the Members of Lincoln Private Investment Office LLP (continued)
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 Auditors' 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:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • The nature of the industry and sector in which the LLP operates; the control environment and business performance including key drivers for performance targets. • The outcome of enquiries of management, including whether management was aware of any instances of non- compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. • Supporting documentation relating to the LLP's policies and procedures for: - Identifying, evaluating, and complying with laws and regulations - Detecting and responding to the risks of fraud • The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. • The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. • The legal and regulatory framework in which the LLP operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, and the Financial Conduct Authority ("FCA") Regulations (including the Client Asset Rules ("CASS rules"), or which had a fundamental effect on the operations of the LLP, including General Data Protection requirements, and Anti- bribery and corruption. Audit response to risks identified Our procedures to respond to the risks identified included the following: • Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements. • Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. • Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities. • Enquiring of management about any actual and potential litigation and claims. • Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud. We have also considered the risk of fraud through management override of controls by: • Testing the appropriateness of journal entries and other adjustments. • Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and • Evaluating the rationale of any significant transactions that are unusual or outside the normal course of business.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Independent Auditors' Report to the Members of Lincoln Private Investment Office LLP (continued)
Audit response to risks identified (continued)
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP's members those matters we are required to state to them in an Auditors' 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 LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Railway Road
Cheshire
SK1 3GG
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Profit and Loss Account
For the Year Ended 31 March 2026
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Statement of Comprehensive Income
For the Year Ended 31 March 2026
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Registered number: OC389623
Balance Sheet
As at
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Registered number: OC389623
Balance Sheet (continued)
As at 31 March 2026
The financial statements were approved and authorised for issue by the members and were signed on their behalf by:
The notes on pages 15 to 26 form part of these financial statements.
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Statement of Changes in Members' Interests
For the Year Ended 31 March 2026
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Statement of Cash Flows
For the Year Ended 31 March 2026
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Notes to the Financial Statements
For the Year Ended 31 March 2026
Lincoln Private Investment Office LLP is a limited liability partnership limited by members capital, incorporated in the United Kingdom.
The LLP's registered office and its principal place of business is 32 Grosvenor Gardens, London, England, SW1W 0DH. The principal activity of the LLP is that of a Wealth Manager.
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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the LLP's accounting policies (see note 3).
The following principal accounting policies have been applied:
Revenue relates to fees receivable for services as a Wealth Manager. Income is recognised as it falls due, typically on a monthly basis based on the fee arrangements agreed with its clients.
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Notes to the Financial Statements
For the Year Ended 31 March 2026
2.Accounting policies (continued)
A division of profits is the mechanism by which the profits of an LLP become a debt due to members. A division may be automatic or discretionary, may relate to some or all of the profits for a financial period and may take place during or after the end of a financial period.
An automatic division of profits is one where the LLP does not have an unconditional right to avoid making a division of an amount of profits based on the members' agreement in force at the time, whereas a discretionary division of profits requires a decision to be made by the LLP, which it has the unconditional right to avoid making.
The LLP divides profits automatically. Automatic divisions of profits are recognised as 'Members' remuneration charged as an expense' in the Statement of Comprehensive Income.
In the event of the LLP making losses, the loss is recognised as a credit amount of 'Members' remuneration charged as an expense' where it is automatically divided or as a debit within equity under 'Other reserves' if not divided automatically.
The LLP classifies distributions of profits linked to members' remuneration as operating cash flows in the Statement of Cash Flows, as these are linked to the performance of the LLP.
During the year, the LLP made profits of £3,537,191 (2025: £3,317,121). Of this, £3,069,800 (2025: £2,655,190) was deemed to be fixed profit share, including fixed drawings and bonuses, with further amounts of £467,391 (2025: £661,931) being automatically allocated to all members based on their participation rights. Members' entitlement to profits are shown within Members' interests and are treated as a liability. Where a member has made drawings in excess of his or her profit entitlement, these amounts are included as debtors under "Amounts due from Members." It has been agreed that all such amounts will be impaired in full to "other reserves" as they arise, and as such, a charge or credit is displayed within the statement of other comprehensive income each year, representing the movement on overdrawn loan accounts.
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Notes to the Financial Statements
For the Year Ended 31 March 2026
2.Accounting policies (continued)
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.
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Notes to the Financial Statements
For the Year Ended 31 March 2026
2.Accounting policies (continued)
The LLP has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the LLP's Balance Sheet when the LLP becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The LLP's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 LLP after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Notes to the Financial Statements
For the Year Ended 31 March 2026
2.Accounting policies (continued)
year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
The whole of the turnover is attributable to the LLP's principal activity as described in note 1.
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Notes to the Financial Statements
For the Year Ended 31 March 2026
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Notes to the Financial Statements
For the Year Ended 31 March 2026
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Lincoln Private Investment Office LLP
Notes to the Financial Statements
For the Year Ended 31 March 2026
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||