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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 March 2026 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 relating to the provision of financial advice includes fees and commissions. Fees are charged on a time-cost or fixed fee basis and are recognised in line with the underlying service. Commission is recognised upon receipt following confirmation of the underlying policy or product. All income is net of value added tax and is derived within the UK. |
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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 year is accounted for as an allocation of profits. |
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Tangible non-current 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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Long leasehold property |
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Straight line over the period of the lease |
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Fixtures, fittings and equipment |
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25% Straight line |
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Leasing |
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Tangible fixed assets held under leasing arrangements which transfer substantially all the risks and rewards of ownership to the LLP are capitalised and included in the balance sheet at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the profit and loss account. |
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Rentals payable under operating leases are dealt with in the profit and loss account as incurred over the financial period of the rental agreement. |
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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 Statement of Financial Position bank overdrafts are shown within Creditors. |
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Borrowing costs |
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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. |
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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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Foreign currencies |
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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. |
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Pensions |
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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 Income Statement in the financial period to which they relate. |
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| 3. |
SIGNIFICANT ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
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Preparation of the financial statements requires management to make significant judgements and estimates. Whilst estimates are based on historical experience and other factors considered relevant, actual results may differ from those estimates. The items in the financial statements where these judgments and estimates have been made include: |
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Revenue recognition and accrued income |
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The LLP provides financial advisory, wealth management and related professional services to clients under both recurring and ad hoc engagement arrangements. Management exercises judgement in determining when performance obligations have been satisfied and revenue should be recognised, particularly where services are provided over a period of time or where fees are contingent upon the completion of specific transactions or milestones. The LLP recognises accrued income in respect of financial advisory and wealth management services provided before the year end but not yet invoiced. The amount recognised is based on management's assessment of work performed, contractual fee arrangements and, where relevant, expected transaction completion. Actual amounts invoiced and collected may differ from these estimates |
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Depreciation |
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Management reviews the estimated useful economic lives and residual values of property, plant and equipment at each reporting date. The calculation of depreciation is based on management's assessment of the expected period over which the assets will generate economic benefits for the LLP and the expected residual values at the end of those periods. Actual asset lives and residual values may differ from those estimated and could result in a material adjustment to depreciation charges in future periods. |
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Going concern |
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The designated members have assessed the LLP's ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. This assessment includes consideration of recurring fee income, client retention levels, cash flow forecasts and regulatory capital requirements. Following this review, the designated members consider it appropriate to prepare the financial statements on a going concern basis. |