Met Facilities LLP - LLP accounts 22.3

REGISTERED NUMBER: OC373244 (England and Wales)

Report of the Members and

Financial Statements

for the Year Ended 31 March 2022

for

MET FACILITIES LLP

Page

General Information

1

Report of the Members

2

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Reconciliation of Members' Interests

13

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

Designated members:

S D Gordon

M P Jacobs

D B Kessler

B Kotecha

Registered office:

35 Ballards Lane

London

N3 1XW

Registered number:

OC373244 (England and Wales)

Auditors:

Haines Watts (City) LLP

Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

The members present their report with the financial statements of the LLP for the year ended 31 March 2022.

Principal activity

The LLP is authorised and regulated by the Financial Conduct Authority ("FCA") and the principal activity of the LLP is to provide operational and support facilities to FCA registered firms.

Review of business

The results for the year and the financial position at the year end were considered satisfactory by the members.

ICARA (Unaudited)

The LLP is now subject to the IFPR regime. The LLP has prepared an ICARA report under the new rules as at 31 March 2022 and was signed off on 29 April 2022.

As at the date of the report of the Firm at 31 March 2022 it had a surplus of CET1 Own Funds held over the Own Funds threshold requirement through the ICARA process set by FCA. The Firm also has a surplus of Liquid Assets held over the Liquid Assets requirement as identified through the ICARA process.

Future developments

The Members expect the business to be well positioned for the forthcoming year.

Designated members

The designated members during the year under review were:

S D Gordon

M P Jacobs

D B Kessler

B Kotecha

Results for the year and allocation to members

The profit for the year before members' remuneration and profit shares was £9,543 (2021 - £14,114 profit).

Members' interests

Each member's subscription to the capital of the LLP is determined by the underlying LLP agreement and is repayable following retirement from the LLP.

Details of changes in members' capital in the year ended 31 March 2022 are set out in the Reconciliation of Members' Interests.

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 on the basis of the methodology in the underlying LLP agreement. Members can 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.

Financial instruments

This section highlights some of the key business risks that impact on the firm but it is not intended to be an extensive analysis of all of the risks facing the business. Some risks may be unknown to us and other risks, currently regarded as immaterial, could turn out to be material. All of them have the potential to impact on the business.

The Members have considered the risks including the conflict in Ukraine and other more technology industry focused events. Whilst some of these events may impact our business, and we are preparing for them insofar as we can without knowing what the final outcomes may be, at present the Members are not seeing any impact on the business and anticipate opportunities arising as a result of future changes in our business environment.

Management continually monitor the key risks facing the business together with assessing the controls used for managing these risks.

Operational risk

Operational risk is defined as the risk of direct or indirect loss, or damaged reputation resulting from inadequate or failed internal processes, people and systems, or from external events including legal and compliance risks. Operational risks are inherent in all activities within the organisation, and in all interaction with external parties. The Firm monitors operational risk through internal controls.

Interest rate risk

The Firm is exposed to interest rate risk with regard to holdings in cash. Cash holdings on deposit are at a fixed rate. The Firm does not have any borrowings and surplus funds are placed on short term deposits and insofar as is reasonably practicable are held in a balance of currencies to reflect and naturally hedge the Firm's cost base.

Credit risk

Credit risk is the possibility of a loss occurring due to the financial failure of a client, counterparty or bank of the Firm to meet its contractual debt obligations. The Firm manages credit risk to which it is exposed through the application of credit limits which are monitored on a regular basis by the Members.

Liquidity risk

It is the Firm's policy to ensure that it has sufficient access to funds to cover all forecast committed requirements for the next 12 months. Personnel within the Firm, supported by third party advisors, are responsible for producing and maintaining market and liquidity risk reports based on the Financial Conduct Authority's methodologies under the Capital Adequacy Directive.

Section 172(1) statement

Statement by the members in performance of their statutory duties in accordance with s172 (1) Companies Act 2006. The members of Met Facilities LLP consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the LLP for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Act) in the decisions taken during the year ended 31 March 2022. In particular, by performance of the following:

- Our business aims are designed to have a long-term beneficial impact on the LLP and to contribute to its success.

- Our employees are fundamental to our business aims. We aim to be a responsible employer in our approach to the pay and benefits our employees receive.

- Our business requires strong relationships with suppliers and others and we continually strive to maintain and improve these relationships.

- The impact of the LLP's operations on the community and environment are considered by the members and reviewed regularly.

- As the members, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance.

Key performance indicators (KPIs)

Management use a range of performance measures to monitor and manage the business. Summarised below is an extract from the audited financial statements:

2022

2021

£'000

£'000

Turnover

866

1,028

Profit/(Loss) before members remuneration

10

14

Members' interests

966

915

Given the straight forward nature of the business the members are of the opinion that analysis using non-financial KPIs is not necessary for the understanding of the development, performance or position of the business.

Statement of members' responsibilities

The members are responsible for preparing the Report of the Members and the financial statements in accordance with applicable law and regulations.

Legislation applicable to limited liability partnerships 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 legislation applicable to limited liability partnerships 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 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 enable them to ensure that the financial statements comply with the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of 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.

Statement as to disclosure of information to auditors

So far as the members are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the LLP's auditors are unaware, and each member has taken all the steps that he ought to have taken as a member in order to make himself aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.

Auditors

The auditors, Haines Watts (City) LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the members:

M P Jacobs - Designated member

25 July 2022

Opinion

We have audited the financial statements of Met Facilities LLP (the 'LLP') for the year ended 31 March 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Reconciliation of Members' Interests, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the LLP's affairs as at 31 March 2022 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

Basis for opinion

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 UK, including the FRC'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.

Conclusions relating to going concern

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.

Other information

The members are responsible for the other information. The other information comprises the information in the Report of the Members, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to LLPs requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of members

As explained more fully in the Statement of Members' Responsibilities set out on page four, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the members are responsible for assessing the LLP's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; and

- we identified the laws and regulations applicable to the LLP through discussions with members and other management, and from our commercial knowledge; and

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the LLP, including the Companies Act 2006, employment, data protection and capital requirements; and

- we assessed the extent of compliance with the laws and regulations identified above though making enquires of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the LLP's material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships; and

- tested journal entries to identify unusual transactions; and

- assessed whether judgement and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosure to underlying supporting documentation; and

- reading the minutes of meetings of those charged with governance; and

- enquiring of management as to actual or potential litigation and claims; and

- reviewing correspondence.

We reviewed the Financial Conduct Authority's (FCA) register for any disciplinary proceedings or instances of non-compliance with rules and regulations and none were identified.

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 Report of the Auditors.

Use of our 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 to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application 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 a Report of the Auditors 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.

Andrew Jepson FCCA (Senior Statutory Auditor)

for and on behalf of Haines Watts (City) LLP

Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

26 July 2022

Turnover

4

866,254

1,027,778

Administrative expenses

(874,108

)

(1,065,229

)

(7,854

)

(37,451

)

Other operating income

24,404

51,565

Operating profit

6

16,550

14,114

Interest payable and similar expenses

7

(7,007

)

-

Profit for the financial year before members' remuneration and profit shares

9,543

14,114

Profit for the financial year before members' remuneration and profit shares

9,543

14,114

Members' remuneration charged as an expense

8

(9,543

)

(14,114

)

Profit for the financial year available for discretionary division among members

-

-

Profit for the financial year available for discretionary division among members

-

-

Other comprehensive income

-

-

Total comprehensive income for the year

-

-

Fixed assets

Tangible assets

9

-

6,040

Investments

10

6,000

6,000

6,000

12,040

Current assets

Debtors

11

960,097

1,269,608

Cash at bank and in hand

503,963

854,999

1,464,060

2,124,607

Creditors

Amounts falling due within one year

12

285,690

939,023

Net current assets

1,178,370

1,185,584

Total assets less current liabilities

1,184,370

1,197,624

Creditors

Amounts falling due after more than one year

13

151,042

213,542

Net assets attributable to members

1,033,328

984,082

Amounts and other debts due to

members

17

233,328

184,082

Members' other interests

Capital accounts

800,000

800,000

1,033,328

984,082

Total members' interests

Amounts and other debts due to

members

17

233,328

184,082

Members' other interests

800,000

800,000

Amounts due from members

11

(67,163

)

(69,549

)

966,165

914,533

The financial statements were approved by the members of the LLP and authorised for issue on 25 July 2022 and were signed by:

M P Jacobs - Designated member

EQUITY

Members' other interests

Members'

capital

(classified

Other

as equity)

reserves

Total

£

£

£

Balance at 1 April 2021

800,000

-

800,000

Members' remuneration charged as an expense, including employment and retirement benefit costs

-

-

-

Profit for the financial year available for discretionary division among members

-

-

-

Members' interests after profit for the year

800,000

-

800,000

Introduced by members

-

-

-

Drawings

-

-

-

Balance at 31 March 2022

800,000

-

800,000

DEBT

TOTAL

Loans and other debts due to

MEMBERS'

members less any amounts due

INTERESTS

from members in debtors

Other

amounts

Total

£

£

Amount due to members

184,082

Amount due from members

(69,549

)

Balance at 1 April 2021

114,533

914,533

Members' remuneration charged as an expense, including employment and retirement benefit costs

9,543

9,543

Profit for the financial year available for discretionary division among members

-

-

Members' interests after profit for the year

124,076

924,076

Introduced by members

50,365

50,365

Drawings

(8,276

)

(8,276

)

Amount due to members

233,328

Amount due from members

(67,163

)

Balance at 31 March 2022

166,165

966,165

EQUITY

Members' other interests

Members'

capital

(classified

Other

as equity)

reserves

Total

£

£

£

Balance at 1 April 2020

50,000

-

50,000

Members' remuneration charged as an expense, including employment and retirement benefit costs

-

-

-

Profit for the financial year available for discretionary division among members

-

-

-

Members' interests after profit for the year

50,000

-

50,000

Introduced by members

750,000

-

750,000

Drawings

-

-

-

Balance at 31 March 2021

800,000

-

800,000

DEBT

TOTAL

Loans and other debts due to

MEMBERS'

members less any amounts due

INTERESTS

from members in debtors

Other

amounts

Total

£

£

Amount due to members

1,072,791

Amount due from members

(71,838

)

Balance at 1 April 2020

1,000,953

1,050,953

Members' remuneration charged as an expense, including employment and retirement benefit costs

14,114

14,114

Profit for the financial year available for discretionary division among members

-

-

Members' interests after profit for the year

1,015,067

1,065,067

Introduced by members

(742,460

)

7,540

Drawings

(158,074

)

(158,074

)

Amount due to members

184,082

Amount due from members

(69,549

)

Balance at 31 March 2021

114,533

914,533

Cash flows from operating activities

Cash generated from operations

1

(374,064

)

231,706

Interest paid

(7,007

)

-

Net cash from operating activities

(381,071

)

231,706

Transactions with members and former

members

Payments to members

(8,276

)

(158,074

)

Contributions by members

50,365

(54,960

)

42,089

(213,034

)

Cash flows from other financing activities

New loans in year

-

250,000

Loan repayments in year

(36,458

)

-

Government grant receipts

24,404

-

(12,054

)

250,000

Net cash from financing activities

30,035

36,966

(Decrease)/increase in cash and cash equivalents

(351,036

)

268,672

Cash and cash equivalents at beginning of year

2

854,999

586,327

Cash and cash equivalents at end of year

2

503,963

854,999

1.	Reconciliation of profit for the financial year available for discretionary division among members to cash generated from operations

2022

2021

£

£

Profit for the financial year available for discretionary division among members

-

-

Members' remuneration charged as an expense

9,543

14,114

Depreciation charges

6,040

2,973

Government grants

(24,404

)

-

Finance costs

7,007

-

(1,814

)

17,087

Decrease/(increase) in trade and other debtors

307,125

(319,921

)

(Decrease)/increase in trade and other creditors

(679,375

)

534,540

Cash generated from operations

(374,064

)

231,706

2.	Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2022

31/3/22

1/4/21

£

£

Cash and cash equivalents

503,963

854,999

Year ended 31 March 2021

31/3/21

1/4/20

£

£

Cash and cash equivalents

854,999

586,327

3.	Analysis of changes in net funds

Other

non-cash

At 1/4/21

Cash flow

changes

At 31/3/22

£

£

£

£

Net cash

Cash at bank

and in hand

854,999

(351,036

)

503,963

854,999

(351,036

)

503,963

Debt

Debts falling due

within 1 year

(36,458

)

(26,042

)

-

(62,500

)

Debts falling due

after 1 year

(213,542

)

62,500

-

(151,042

)

(250,000

)

36,458

-

(213,542

)

Net funds (before

members' debt)

604,999

(314,578

)

-

290,421

Amounts and other debts

due to members

Other amounts

due to members

(184,082

)

(42,089

)

(7,157

)

(233,328

)

Net funds

420,917

(356,667

)

(7,157

)

57,093

1.	Introduction

A summary of the principal accounting policies, all of which have been applied consistently throughout the year and the preceding year except where stated otherwise, is set out below.

2.	Statutory information

Met Facilities LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the British pound £ sterling, rounded to the nearest pound.

3.	Accounting policies

Basis of preparing the financial statements

These financial statements are prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", the Companies Act 2006 as applied to LLP's by the Limited Liability partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and the requirements of the Statement of Recommended Practice , Accounting by Limited Liability Partnerships.

Significant judgements and estimates

In applying the firm's accounting policies, the members are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The members' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Critical judgements in applying the LLP's accounting policies

The critical judgement that the members have made in the process of applying the firm's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below:

(i) Assessing indicators and impairment

In assessing whether there have been any indicators or impairment of assets, the members have considered both external and internal sources of information such as market conditions, and experience or recoverability. There have been no indicators or impairments identified during the current financial year.

Key accounting estimates and assumptions

The Firm makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The key assumptions concerning the future, and other key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(i) Recoverability of receivables

The Firm establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the members consider factors such as the aging of the receivables, past experience and recoverability, and the credit profile of customers.

(ii) Determining residual values and useful economic lives of property, plant and equipment

The Firm depreciates tangible assets over their estimated useful lives. The estimation of the useful lives is based on historical performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value management aim to assess the amount that the firm would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the LLP and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts and rebates.

Turnover represents fees receivable (excluding value added tax) for services provided in the normal course of business and are recognised when receivable..

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Office equipment

-

20% straight line on cost

Fixtures and fittings

-

20% straight line on cost

Financial instruments - classified as basic financial instruments

Financial assets and liabilities are recognised when the firm becomes party to the contractual provisions of the financial instrument. The firm only holds basic financial instruments which comprise cash and cash equivalents, trade and other receivables, and trade and other payables.

Financial assets - classified as basic financial instruments

(i) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less.

(ii) Trade and other receivables

Trade and other receivables are initially recognised at the transaction price, including any transaction costs, and subsequently measured at amortised cost including the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount of the cash expected to be received, net of any impairment.

At the end of each reporting period, the firm assesses whether there is objective evidence that a receivable amount may be impaired. A provision for impairment is established when there is objective evidence that the firm will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is recognised immediately in the Income Statement.

(iii) Financial liabilities

Basic financial liabilities, including trade and other payables, loans and other borrowings are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest method. Amounts that are payable within one year are measured at the undiscounted amount of the cash expected to be paid.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at the undiscounted amount.

Foreign currencies

Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at that date the transaction took place. Where this is not possible to determine, income and expense items are translated using an average exchange rate for the period.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are reported at the rates of exchange prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the reporting date of monetary assets and liabilities are reported in the Income Statement.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The LLP operates a defined contribution pension scheme. Contributions payable to the LLP's pension scheme held separately from the LLP and are charged to the Income Statement in the period to which they relate.