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| 2. |
ACCOUNTING POLICIES |
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Statement of compliance |
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The financial statements of the Limited Liability Partnership for the financial year ended 31 July 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. |
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Basis of preparation |
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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. |
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Cash flow statement |
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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. |
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Turnover |
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Turnover represents the amounts recoverable for the services provided to clients, under contractual obligations which are performed gradually over time. Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satified: - The amount of turnover can be measured reliably; - It is probable that the company will receive the consideration due under the contract; - The stage of completion of the contract at the end of the reporting period can be measured reliably; and - The costs incurred and the costs to complete the contract can be measured reliably. |
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Members' remuneration |
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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 period is accounted for as an allocation of profits. |
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Tangible fixed assets and depreciation |
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Tangible fixed assets are stated at cost or at valuation, less accumulated depreciation. Cost comprises purchase price and other directly attributable costs. Freehold land is stated at cost and is not depreciated. 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: |
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Plant and machinery |
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25% reducing balance |
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Motor vehicles |
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25% reducing balance |
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Stock |
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Stocks are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
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Trade and other debtors |
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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. |
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Cash and cash equivalents |
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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 Balance Sheet bank overdrafts are shown within Creditors. |
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Trade and other creditors |
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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. |
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Related parties |
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For the purposes of these financial statements a party is considered to be related to the Limited Liability Partnership if: |
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the party has the ability, directly or indirectly, through one or more intermediaries to control the Limited Liability Partnership or exercise significant influence over the Limited Liability Partnership in making financial and operating policy decisions or has joint control over the Limited Liability Partnership; |
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the Limited Liability Partnership and the party are subject to common control; |
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the party is an associate of the Limited Liability Partnership or forms part of a joint venture with the Limited Liability Partnership; |
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the party is a member of key management personnel of the Limited Liability Partnership or the Limited Liability Partnership's parent, or a close family member of such as an individual, or is an entity under the control, joint control or significant influence of such individuals; |
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the party is a close family member of a party referred to above or is an entity under the control or significant influence of such individuals; or |
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the party is a post-employment benefit plan which is for the benefit of employees of the Limited Liability Partnership or of any entity that is a related party of the Limited Liability Partnership. |
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Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the Limited Liability Partnership. |
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