FRS 102 LLP Example Financial Statements - · PDF fileThese illustrative financial statements...

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FRS 102 LLP

Example Financial Statements Issued February 2016

FRS 102 LLP - Example financial statements | issued February 2016


Introduction

These illustrative financial statements are an example of a group and parent company financial

statements prepared for the first time in accordance with FRS 102, The Financial Reporting Standard

applicable in the UK and Republic of Ireland ('FRS 102') and the Statement of Recommended

Practice: Accounting by Limited Liability Partnerships ('LLP SORP') issued in July 2014. They

comprise example primary statements and notes to the financial statements. Their preparation

involved striking a balance between helpful guidance and burdensome detail. The disclosures

illustrated, therefore, do not include all possible disclosures as this would clearly make any guidance

too unwieldy to be of wide, practical use. For this reason they should not be used as a substitute for

completing a full review and consulting the current LLP SORP, LLP Regulations and FRS 102 The

Financial Reporting Standard applicable in the UK and Republic of Ireland to ensure you have

understood all the potential presentational and disclosure requirements for your own transactions

and circumstances.

These illustrative financial statements have been prepared based on the existing Regulations

applicable to LLPs and for the avoidance of doubt, those applicable as at 30 November 2015. In

addition, source references for the illustrative disclosures have been included in the right hand

margin of the financial statements. They have been prepared for an illustrative year-end date of 30

April 2016 and therefore if the year-end differed, any references should be altered accordingly.

Examples of source references used are:

4.14 – Paragraph 4.14 of FRS 102

s408 – Section 408 of the Companies Act 2006 as applied to Limited Liability Partnerships

Sch 1.66(1) – Paragraph 66(1) of Schedule 1 to Statutory Instrument 2008 Number 1913 Limited

Liability Partnerships The Large and Medium-sized Limited Liability Partnerships (Accounts)

Regulations 2008

SORP 38 – Paragraph 38 of the Statement of Recommended Practice Accounting by Limited

Liability Partnerships issued July 2014

Whilst every care has been taken in their preparation, users are advised to use these financial

statements as a guide in conjunction with the actual text of the standard and implementation

guidance issued, together with relevant legislation, and to consult their professional advisers before

concluding on accounting treatments and disclosures for their own transactions and circumstances.

This publication has been prepared only as a guide. No responsibility can be accepted by us for loss

occasioned by any person acting or refraining from acting as a result of any material in this

publication.

To assist the user further, disclosure requirements introduced by FRS 102 or areas of difference in

comparison to old UK Generally Accepted Accounting Principles ('GAAP') have been highlighted.

FRS 102 LLP - Example financial statements | issued February 2016


Furthermore, two appendices have been included to illustrate an example Statement of

Comprehensive Income presented as one statement (as permitted by FRS 102 5.2(a)) and an example

defined benefit plan disclosure.

The LLP SORP requires LLPs to disclose the following information (SORP 30):

the principal activities of the LLP and its subsidiary undertakings, indicating any significant

changes during the year;

an indication of the existence of any branches outside the UK;

the identity of anyone who was a designated member during the year; and

the policy of the LLP regarding members’ drawings and the subscription and repayment of

amounts subscribed or otherwise contributed by members (SORP 69).

These disclosures, together with any other non-financial performance matters that an LLP may wish

to communicate to its members, may be presented anywhere in the annual report. Although not a

statutory requirement, a separate Members’ Report offers one possible vehicle for such

communication and is considered best practice (SORP 31).

FRS 102 LLP - Consolidated Income Statement | For the year ended 30 April 2016


(£'000) Note 2016 2015 Source

reference

Turnover 5 xxxx xxxx 5.7C

Other operating income xxxx xxxx

xxxx xxxx

Other external charges (xxxx) (xxxx)

Staff costs (xxxx) (xxxx)

Depreciation (xxxx) (xxxx)

Other operating expenses (xxxx) (xxxx)

Operating profit xxxx xxxx 5.9B

Interest receivable and similar income xxxx xxxx 11.48(b) 23.30(b)(iii)

Interest payable and similar charges (xxxx) (xxxx) 11.48(b) Sch 1.63(1)

Tax on profit or loss on ordinary activities 8 (xxxx) (xxxx)

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

6 xxxx xxxx

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

xxxx xxxx

Members' remuneration charged as an expense

7 (xxxx) (xxxx)

Profit for the financial year available for discretionary division among members

xxxx xxxx

The Balance Sheet and Profit and Loss Account are still required to be presented in accordance with the relevant regulations governing the form and content of LLP financial statements. These are set out in SI 2008/1913 for large and medium sized LLPs and SI 2008/1912 for LLPs taking advantage of the small LLPs regime for accounts/LLP regulations. The titles of these primary statements could be changed to the FRS 102 titles, i.e. Statement of Financial Position and Income Statement, or continue to use the LLP regulations format titles, i.e. Balance Sheet and Profit and Loss Account.

An entity may present a separate Income Statement and Statement of Comprehensive Income (see page 2), or combine the two into a single Statement of Comprehensive Income (see appendix for illustration of one-statement approach).

FRS 102 LLP - Consolidated Statement of Comprehensive Income | For the year ended 30 April

2016


(£'000) 2016 2015


xxxx xxxx

Exchange differences on retranslation of foreign operations

xxxx xxxx 5.5A 30.25(b)

Total comprehensive income for the financial year xxxx xxxx

Total comprehensive income for the financial year attributable to:

5.6(b)

Owners of the parent (xxxx) (xxxx)

Non-controlling interests (xxxx) (xxxx)

The Statement of Comprehensive Income is essentially equivalent to the Statement of Total Recognised Gains and Losses ('STRGL') under old UK GAAP. However, the STRGL only presents the parent entity's share of profits and other gains and losses, whereas a Statement of Comprehensive Income includes the non-controlling interests share of profit and other gains and losses.

Disclosure of the allocation of profits and total comprehensive income between owners of the parent and any non-controlling interests is required.

FRS 102 LLP - Consolidated Statement of Financial Position | For the year ended 30 April 2016


(£'000) Note 2016 2015 Fixed assets

Intangibles 9 xxxx xxxx

Tangible assets 10 xxxx xxxx

Investments 11 xxxx xxxx

xxxx xxxx

Current assets

Debtors 12 xxxx xxxx

Cash at bank and in hand xxxx xxxx

Current assets xxxx xxxx

Creditors: amounts falling due within one year

13 xxxx xxxx

Net current assets / (liabilities) xxxx xxxx

Total assets less current liabilities xxxx xxxx

Creditors: amounts falling due after more than one year

14 xxxx xxxx

Provisions for liabilities 15

Post-retirement payments to former members xxxx xxxx

Other provisions xxxx xxxx

xxxx xxxx

Net assets / (liabilities) attributable to members

xxxx xxxx

Represented by:

Loans and other debts due to members within one year

17

Members' capital classified as a liability xxxx xxxx

Other amounts xxxx xxxx

xxxx xxxx

Members' other interests 17

Members' capital classified as equity xxxx xxxx

Members' other interests – other reserves classified as equity

xxxx xxxx

xxxx xxxx

Non-controlling interests xxxx xxxx

xxxx xxxx

Total members' interests 17

Amounts due from members xxxx xxxx

Loans and other debts due to members xxxx xxxx

Members' other interests xxxx xxxx

xxxx xxxx

The financial statements were approved by the [Board / Members]: on 2016.

Signed on behalf of the [Board / Members]:

LLP registration no: XXXXXX

FRS 102 LLP - Consolidated Statement of Financial Position | For the year ended 30 April 2016


This example balance sheet assumes that the LLP has some capital which would be classified as equity in accordance with section 22 of FRS 102. Exhibit A in Appendix 1 of the LLP SORP (issued July 2014) presents an example statement of financial position for a LLP with no capital classified as equity.

FRS 102 has adopted a variety of terminology from IFRS (such as property, plant & equipment for tangible assets, inventory for stocks, and current liabilities for creditors: amounts falling due within one year). UK LLPs will still need to comply with the LLP regulations, which stipulates the format of, and headings to be used in, the Balance Sheet and Profit and Loss Account.

FRS 102 LLP - LLP Statement of Financial Position | For the year ended 30 April 2016


(£'000) Note 2016 2015 Fixed assets

Tangible assets 10 xxxx xxxx

Investments 11 xxxx xxxx

xxxx xxxx

Current assets

Debtors 12 xxxx xxxx

Cash at bank and in hand xxxx xxxx

Current assets xxxx xxxx

Creditors: amounts falling due within one year

13 xxxx xxxx

Net current assets / (liabilities) xxxx xxxx

Total assets less current liabilities xxxx xxxx

Creditors: amounts falling due after more than one year

14 xxxx xxxx

Provisions for liabilities 15

Post-retirement payments to former members xxxx xxxx

Other provisions xxxx xxxx

xxxx xxxx

Net assets / (liabilities) attributable to members

xxxx xxxx

Represented by:

Loans and other debts due to members within one year

17

Members' capital classified as a liability xxxx xxxx

Other amounts xxxx xxxx

xxxx xxxx

Members' other interests 17

Members' capital classified as equity xxxx xxxx

Members' other interests – other reserves classified as equity

xxxx xxxx

xxxx xxxx

Total members' interests 17

Amounts due from members xxxx xxxx

Loans and other debts due to members xxxx xxxx

Members' other interests xxxx xxxx

xxxx xxxx

The financial statements were approved by the [Board / Members]: on 2016.

Signed on behalf of the [Board / Members]:

LLP registration no: XXXXXX

FRS 102 LLP – Consolidated Statement of Cashflows | For the year ended 30 April 2016


(£'000) Note 2016 2015

Cash flows from operating activities 7.4


xxxx xxxx

Adjustments for: 7.8


xxxx xxxx

Post retirement expense re former members xxxx xxxx SORP 74-75

Amortisation of intangible assets xxxx xxxx

Depreciation of tangible assets xxxx xxxx

Interest paid xxxx xxxx

Interest received xxxx xxxx

Taxation xxxx xxxx

Decrease/(increase) in debtors xxxx xxxx

Increase/(decrease) in creditors xxxx xxxx

Cash from operations xxxx xxxx

Income taxes paid/received xxxx xxxx

Net cash generated from operating activities before transactions with members

xxxx xxxx SORP 74-75


xxxx xxxx

Post retirement payments to former members xxxx xxxx

Net cash generated from operating activities

xxxx xxxx

Cash flows from investing activities 7.5

Proceeds from sale of tangible assets xxxx xxxx

Purchases of tangible assets xxxx xxxx

Purchases of intangible assets xxxx xxxx

Interest received xxxx xxxx 7.15

Net cash from investing activities xxxx xxxx

Cash flows from financing activities 7.6

Repayment of bank loans xxxx xxxx

Repayment of finance lease obligations xxxx xxxx

Interest paid xxxx xxxx 7.15

Dividends paid to non-controlling interest xxxx xxxx 7.16

Capital introduced by members xxxx xxxx

Repayment of capital or debt to members xxxx xxxx

Payments to members that represent a return on amounts subscribed or otherwise contributed

xxxx xxxx SORP 74-75

FRS 102 LLP – Consolidated Statement of Cashflows | For the year ended 30 April 2016


(£'000) Note 2016 2015

Net cash used in financing activities xxxx xxxx

Net increase in cash and cash equivalents xxxx xxxx

Foreign exchange translation adjustment xxxx xxxx 7.13

Cash and cash equivalents at the beginning of year

xxxx xxxx

Cash and cash equivalents at end of year xxxx xxxx

Cash flows are presented under just three headings (operating, investing and financing), rather than the potential nine available under old UK GAAP.

Components of cash and cash equivalents to be disclosed and reconciled to the Statement of Financial Position. However, the reconciliation is not required if the amount of cash and cash equivalents is identical to the amount similarly described in the Statement of Financial Position.

FRS 102 LLP – Consolidated Statement of Changes in Equity | For the year ended 30 April 2016


(£'000)

Members' capital

classified as equity

Foreign exchange

translation reserve

Members' other

interests

Amount attributable

to owners of the parent

Non-controlling

interests Total

At 1 May 2014 xxxx xxxx xxxx xxxx xxxx xxxx


- - xxxx xxxx xxxx xxxx

Other comprehensive income

- - - - - -

Foreign exchange translation difference

- xxxx - xxxx xxxx xxxx

Total comprehensive income for the year

- xxxx xxxx xxxx xxxx xxxx

Capital introduced xxxx - - xxxx xxxx xxxx

Division of profits - - xxxx xxxx xxxx xxxx



- - xxxx xxxx xxxx xxxx


- - - - - -


- xxxx - xxxx xxxx xxxx

Total comprehensive income for the year

- xxxx xxxx xxxx xxxx xxxx

Capital introduced xxxx - - xxxx xxxx xxxx

Division of profits - - xxxx xxxx xxxx xxxx

At 30 April 2016 xxxx xxxx xxxx xxxx xxxx xxxx

FRS 102 LLP – LLP Statement of changes in equity | For the year ended 30 April 2016


(£'000) Members' capital

classified as equity Members'

other interests Total

At 1 May 2014 xxxx xxxx xxxx


- xxxx xxxx

Other comprehensive income - - -

Total comprehensive income for the year - xxxx xxxx

Capital introduced xxxx - xxxx

Division of profits - xxxx xxxx



- xxxx xxxx

Other comprehensive income - - -

Total comprehensive income for the year - xxxx xxxx

Capital introduced xxxx - xxxx

Division of profits - xxxx xxxx

At 30 April 2016 xxxx xxxx xxxx

The Companies Act 2006 Section 408 exemption to present an individual profit and loss account for an LLP will still be available. This means that the Statement of Comprehensive Income (whether presented as one statement or two) is not required for the LLP's individual accounts. However the exemption does not extend to the parent LLP's Statement of Changes in Equity, which will be required.

FRS 102 LLP - Notes to the financial statements | For the year ended 30 April 2016


1 Entity information

[The legal form of the entity, its country of incorporation and the address of its registered office (or principal place of business, if different from the registered office) is required to be disclosed in the notes.]

3.24(a)

[Disclosure of an LLP and its subsidiary undertakings' principal activities and nature of operations is required. If this information is disclosed elsewhere, e.g. in the members' report, then it need not be repeated here.]

3.24(b) SORP 30

2 Basis of preparation

[Accounting policies should be disclosed for all significant items to provide sufficient information to enable users to understand the policies adopted and how they have been implemented.]

The financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 – 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), Companies Act 2006 as applied by LLPs and the Statement of Recommended Practice (SORP), Accounting by Limited Liability Partnerships, issued in July 2014. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

3.3 8.2(a)

This is the first year in which the financial statements have been prepared under FRS 102. Refer to note 23 for an explanation of the transition.

The financial statements are presented in Sterling (£). 3.23(d) 30.26

The group financial statements consolidate the financial statements of FRS 102 LLP and all its subsidiary undertakings drawn up to 30 April each year.

3.23(b) 9.23(a)

The LLP has taken advantage of section 408 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and has not included its own Profit and Loss Account in these financial statements. The LLP's profit for the year was £xxxx (2015: £xxxx).

s408

The individual accounts of FRS 102 LLP have also adopted the following disclosure exemptions:

the requirement to present a statement of cash flows and related notes

financial instrument disclosures, including:

– categories of financial instruments,

– items of income, expenses, gains or losses relating to financial instruments, and

– exposure to and management of financial risks.

1.11(c)(i)

Going concern

After reviewing the group's forecasts and projections, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. The LLP therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

3.8&9 FRC Guidance



3 Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgments and estimates have been made include:

[An entity shall disclose the judgements, apart from those involving estimations, that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.]

8.6

[An entity shall disclose in the notes information about the key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. In respect of those assets and liabilities, the notes shall include details of:

their nature; and

their carrying amount as at the end of the reporting period.]

8.7

4 Principal accounting policies

4.1 Business combinations

Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquire plus costs directly attributable to the business combination.

Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated statement of financial position immediately below goodwill.

4.2 Investment in subsidiaries

The consolidated financial statements incorporate the financial statements of the LLP and entities (including special purpose entities) controlled by the group (its subsidiaries). Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

9.27(b)

4.3 Investments in associates

Investments in associates are recognised initially in the consolidated statement of financial position at the transaction price and subsequently adjusted to reflect the group's share of total comprehensive income and equity of the associate, less any impairment.

Any excess of the cost of acquisition over the group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the associate recognised at the date of acquisition, although treated as goodwill, is presented as part of the investment in the associate. Amortisation is charged so as to allocate the cost of goodwill over its estimated useful life, using the straight-line method. Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

Investments in associates are accounted for at cost less impairment in the individual financial statements.

14.12(a) 9.27(b)



4.4 Intangible assets

Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

Software development costs are recognised as an intangible asset when all of the following criteria are demonstrated:

The technical feasibility of completing the software so that it will be available for use or sale.

The intention to complete the software and use or sell it.

The ability to use the software or to sell it.

How the software will generate probable future economic benefits.

The availability of adequate technical, financial and other resources to complete the development and to use or sell the software.

The ability to measure reliably the expenditure attributable to the software during its development.

Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight-line method. The intangible assets are amortised over the following useful economic lives:

Software development costs 5 years

Goodwill 7 years

If there is an indication that there has been a significant change in amortisation rate or residual value of an asset, the amortisation of that asset is revised prospectively to reflect the new expectations.

If the net fair value of the identifiable assets and liabilities acquired exceeds the cost of a business combination, the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered. Any excess exceeding the fair value of non-monetary assets acquired is recognised in the income statement in the periods expected to be benefitted.

18.27(a)& (b)

4.5 Tangible assets

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets, other than freehold land, over their expected useful lives, using the straight-line method. The rates applicable are:

Freehold buildings 45 years

Leasehold improvements Period of lease

Computer equipment 5 years

Furniture and equipment 10 years

Motor vehicles 4 years

17.31(a)-(c)

4.6 Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the income statement.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the income statement.



4.7 Investments

Investments comprise investments in unquoted equity instruments which are measured at fair value. Changes in fair value are recognised in the income statement. Fair value is estimated by using a

valuation technique.1

11.40&43

4.8 Debtors

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.

11.40

4.9 Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

11.40

4.10 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the group. All other leases are classified as operating leases.

Assets held under finance leases are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss. Assets held under finance leases are included in tangible fixed assets and depreciated and assessed for impairment losses in the same way as owned assets.

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the group recognises annual rent expense equal to amounts owed to the

lessor.2

The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised

over the lease term on a straight line basis.3

20.15(b) 20.15A

1 Investments in shares (other than shares of a subsidiary, associate or joint venture) are required to be carried at fair value through

profit or loss, provided that they are publicly traded, or fair value can be measured reliably, for example by using a valuation technique. Where fair value cannot be measured reliably, then the investment is carried at cost less impairment. However, given that a valuation model of some sort can very often be applied, FRS 102 would appear to allow little scope for this method. 2 Under previous UK GAAP, lease incentives were spread over the period until a market rental applies. This is usually the date of the

first rent review, and thus shorter than the lease term. There is a transitional relief available for lease incentives, such that where a lease commenced before date of transition, the remaining benefit of the lease incentive may continue to be recognised in accordance with previous UK GAAP. 3 Where a lease includes pre-set increases in the rent payable to reflect expected inflation, then the annual expense is recognised in

line with this stepped schedule (rather than spreading the total cost over the period of the lease, as under previous UK GAAP).



4.11 Derivative financial instruments

Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included

under the appropriate format heading depending on the nature of the derivative.4

11.40&43

4.12 Provisions for liabilities

Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it is probable that the group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in the income statement in the period it arises.

Provisions for annual leave

The group recognises a provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months. The provision is measured at the salary cost payable for the period of absence.

Provisions for retirement benefits 5

A provision in respect of annuities is recognised when the member obtains a right to the annuity, which the LLP has no discretion to withhold. The annuities recognised in respect of the LLP are conditional on future services. If the rights to the annuity are earned over a period, costs are recognised over that period. The value of the provision is based on the best estimate of the current value of future cash flows. The provision is recalculated annually to take account of changes in membership, eligibility for post-retirement payments, financial estimates and actuarial assumptions. Amounts recognized in respect of current members are charged to the profit and loss account within “Members’ remuneration charges as an expense”. Charges in respect of former members are expensed in the ‘administrative expenses’ line in the income statement. The liability for post-retirement payments to or in respect of current members is shown as a component of ‘Loans due to former members’. The liability in respect of former members is shown in the balance sheet under ‘Provisions for liabilities’, as ‘Post-retirement payments to former members’. In the year in which the member retires, a transfer is made between the balance in respect of current members and the balance in respect of former members.

4 Non-basic financial instruments include all derivatives, such as: forwards, swaps, caps or collars. All are recognised on the balance

sheet and measured at fair value through profit or loss. This means that at each period end the instrument is re-valued to fair value, with the movement posted to the Income Statement (unless hedge accounting is applied). 5 Retirement benefits for members can take various forms and the accounting implications for these can vary significantly. We

recommend that you review the LLP SORP, paras 75 – 94, noting in particular the flowchart at para 76B and the table at para 87A in order to determine the correct treatment for your particular circumstances. For the purposes of these illustrative financial statements, we have assumed the following:

the obligation to make the post retirement payments is contractual (i.e. set out in the members' agreement)

the obligation only arises if further future service is provided (i.e. members have provided services to date but further services are required to be provided to qualify for the annuities).

Therefore the arrangement is accounted for by reference to section 21 of FRS 102.



4.13 Members' drawings and the subscription and repayment of members' capital 6

In accordance with the LLP agreement, from time to time the firm determines the amount of profit to be treated as members' fixed remuneration. This profit is treated as allocated. The members' agreement sets out that all bar 5% of profits are required to be automatically allocated, 95% of the profits realised in the profit and loss account are treated as members' remuneration charged as an expense by reference to pre-determined profit sharing mechanisms. Allocated profit is included within 'loans and other debts due to members' in 'other amounts'. The remaining 5% is allocated on a discretionary basis per the members' agreement and therefore is shown as 'profit available for discretionary division among members' in the profit and loss account and therefore within an equity reserve, 'members' other interests', on the balance sheet.

Drawings are treated as payments on account of profit allocation and are only repayable to the LLP in so far as there are insufficient profits to allocate against such drawings. Any drawings in excess of

total profits allocated would be included within 'amounts due from members' within debtors.7

The capital requirements of the partnership are determined by the members/Board and are reviewed regularly. Each member is required to subscribe a proportion of this capital. The amount of capital subscribed by each member is usually linked to the earnings allocated to that member. An interest rate of …% is paid on the capital/ No interest is paid on capital. On leaving the partnership, a member's capital is repaid /within/ …….. months/a timescale set by the Board/other members.

The amount of any debt subscribed by each member is determined by…..

During the period/year and up to [date of approval of these accounts] …….. £……. of members' interests was transferred from capital to debt and £…. was transferred from debt to equity which is more fully explained in note [x]..

23.30(a)

6 This accounting policy needs to provide a specific explanation of the LLP members' agreement's approach to drawing, subscription

and repayment of capital, members' remuneration and the accounting requirements that arise from that. The policy above is provided for illustration only. The above policy has been prepared on the assumption that there is fixed remuneration during the year, and that the ultimate profit sharing is such that the LLP cannot avoid allocating 95% of its profit arising in a given year – therefore 95% of the profit made would be required to be shown as members' remuneration charged as an expense and the remaining 5% is available for discretionary division. 7 LLPs are required to disclose the overall policy followed in relation to members’ drawings, including an indication of the policy

applicable where the cash requirements of the business compete with the need to allow cash drawings by members. Such disclosures should include any transfers of members’ interests from equity to debt (and vice versa) during the year and up to the date the accounts are approved. The policy under which members contribute or subscribe amounts to the LLP by way of equity or debt and the policy under which their contributions and subscriptions are repayable by the LLP, should also be disclosed (SORP 30/69).



4.14 Taxation

Tax to be paid on the profits arising in the LLP are a personal tax liability of the members of the LLP and therefore are not included as a tax charge or provision within these financial statements. Tax as presented within these financial statements represents tax arising from other group undertakings.

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is recognised when income or expenses from a subsidiary or associate have been recognised, and will be assessed for tax in a future period, except where:

the group is able to control the reversal of the timing difference; and

it is probable that the timing difference will not reverse in the foreseeable future.

A deferred tax liability or asset is recognised for the additional tax that will be paid or avoided in respect of assets and liabilities that are recognised in a business combination. The amount attributed to goodwill is adjusted by the amount of deferred tax recognised.

Deferred tax is calculated using the tax rates and laws that that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. Deferred tax assets and deferred tax liabilities are offset only if:

the group has a legally enforceable right to set off current tax assets against current tax liabilities, and

the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

4.15 Turnover8

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

23.30(a)

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

23.30(a)

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

23.30(a)

8 This policy should be made explicit and specific to the group's/LLP's circumstances in line with its business. The revenue

recognition policy should be amplified where the nature of transactions requires such amplification. The key principle is that the reader should understand how revenue is earned, measured and recognised in the group's/LLP's particular circumstances.



4.16 Employee benefits

Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

4.17 Foreign currency translation

Functional currency and presentation currency

The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position are presented in Sterling (£).

30.26

Sch 1.68

Transactions and balances

In preparing the financial statements of the individual entities, transactions in currencies other than the functional currency of the individual entities (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences are recognised in profit or loss in the period in which they arise. However, in the consolidated financial statements exchange differences arising on monetary items that form part of the net investment in a foreign operation are recognised in other comprehensive income and are not reclassified to profit or loss.

Translation of group companies

For the purpose of presenting consolidated financial statements, the assets and liabilities of the group's foreign operations are translated from their functional currency to Sterling (£) using the closing exchange rate. Income and expenses are translated using the average rate for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising on the translation of group companies are recognised in other comprehensive income and are not reclassified to profit or loss.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.



5 Turnover

Under FRS 102, unless an entity has debt or equity that is publicly traded or, in the process of filing its financial statements with a securities commission for the purposes of issuing instruments in a public market, the requirements remain similar to those under old UK GAAP in respect of analysis of revenue. However, if an entity chooses or is required to present segmental information then the requirements of IFRS 8 Operating segments should be applied, examples of which have not been provided in these illustrative financial statements.

Turnover, analysed geographically between markets, was as follows:

(£'000) 2016 2015

Europe xxxx xxxx

Rest of the World xxxx xxxx

xxxx xxxx Sch 1.65

Turnover, analysed by category, was as follows:

(£'000) 2016 2015

Sales of goods xxxx xxxx

Rendering of services xxxx xxxx

xxxx xxxx 23.30(b)

Sch 1.65(1)

Turnover is attributable to the following classes of business:

(£'000) 2016 2015

Class 1 xxxx xxxx

Class 2

{Other classes} xxxx xxxx

Group turnover xxxx xxxx

{OR}

The turnover is attributable to …………………….……………{describe activity}



6 Operating profit

The operating profit is stated after:

(£'000) 2016 2015

Auditor's remuneration: xxxx xxxx Tech 14/13

Fees payable to the LLP's auditor for the audit of the LLP's annual accounts

xxxx xxxx

Fees payable to the LLP's auditor and its associates for other services:

xxxx xxxx

Audit of the accounts of subsidiaries xxxx xxxx

Tax compliance services xxxx xxxx

Foreign exchange losses xxxx xxxx 30.25(a)

Other operating lease rentals xxxx xxxx 20.16(b)

Changes in fair value of investments xxxx xxxx 11.48(a) Sch 1. 53(2)(b)(i)

Changes in fair value of derivatives xxxx xxxx 11.48(a) Sch 1.53

Research and development expense xxxx xxxx 18.29

7 Members and employees

Staff costs during the year were as follows:

(£'000) 2016 2015

Wages and salaries xxxx xxxx

Social security costs xxxx xxxx

Other pension costs xxxx xxxx 28.40

xxxx xxxx s411

The Group operates a stakeholder defined contribution pension scheme for the benefit of the employees. The assets of the scheme are administered by an independent pensions provider. Pension payments recognised as an expense during the year amount to £xxxx (2015: £xxxx).

28.40

The average number of employees of the group during the year was:

(Number) 2016 2015

Fee earners xxxx xxxx

Other xxxx xxxx

xxxx xxxx



Information in relation to members (Number) 2016 2015

The average number of members during the year was:

Sch 1.66(1)(2) SORP 70

Full members xxxx xxxx

Information in relation to members (£'000) 2016 2015

Paid under the terms of the LLP agreement xxxx xxxx

Interest on capital xxxx xxxx

Other (if present) xxxx xxxx

xxxx xxxx

(£'000) 2016 2015

The amount of profit attributable to the member with the largest entitlement was:

xxxx xxxx Sch 1.66(3)



8 Tax on profit on ordinary activities

The tax (credit)/charge is based on the profit for the year and represents:

(£'000) 2016 2015

29.26 Sch 1.64

UK Corporation Tax xxxx xxxx

Adjustments in respect of previous periods xxxx xxxx

Overseas taxation xxxx xxxx

Total current tax xxxx xxxx

Deferred taxation: origination and reversal of timing differences

xxxx xxxx

Deferred taxation: changes in tax rates xxxx xxxx

Tax on results on ordinary activities xxxx xxxx

The tax assessed for the year is lower than the standard rate of corporation tax in the United Kingdom at xx% (2015: xx%). The differences are explained as follows:

29.27(b)

Profit on ordinary activities before tax xxxx xxxx

Tax on profit on ordinary activities at the standard rate of xx% (2015: xx%)

xxxx xxxx

Factors affecting charge for the year:

Tax effect of profits of the Group not chargeable to corporation tax

xxxx xxxx

Expenses not deductible for tax purposes xxxx xxxx

Losses carried back xxxx xxxx

Difference in tax rates xxxx xxxx

Prior year adjustments xxxx xxxx

Overseas tax differences xxxx xxxx

Tax on results on ordinary activities9 xxxx xxxx

The aggregate current and deferred tax relating to items that are recognised as items of other comprehensive income is £xxxx (2015: £xxxx).

29.27(a)

During the year the UK corporation tax rate was decreased. Following Budget 20XX announcements, there will be a further reduction in the main rate of corporation tax to XX% from 1 April 20XX.

29.27(d)

9 Note: Reconcile to total tax, i.e. including deferred tax



9 Intangible fixed assets

The group

(£'000)

Software development

costs Goodwill Total

19.26 Sch 1.49

18.2(c)&(e)

Cost


Additions xxxx xxxx xxxx

Exchange adjustments xxxx xxxx xxxx


Depreciation and impairment


Charge for the year xxxx xxxx xxxx

Impairment loss - xxxx xxxx 27.32(a)

Exchange adjustments xxxx xxxx xxxx


Net book amount at 30 April 2016 xxxx xxxx xxxx

Net book amount at 30 April 2015 xxxx xxxx xxxx

Amortisation of intangible fixed assets is included in administrative expenses. 18.27(d)

The group's [software item] is included within software development costs and has a carrying value of £xxxx, and a remaining amortisation period of 2 years.

18.28(a)

An impairment loss on goodwill was recognised in administrative expenses during the period due to worse than expected economic performance of operations in [business unit].

27.33A& 27.32(a)



10 Tangible fixed assets

The group

(£'000) Computer equipment

Furniture and

equipment Motor

vehicles Freehold property

Leasehold improvements Total

17.31 Sch 1.49

Cost


Additions xxxx xxxx xxxx xxxx xxxx xxxx

Disposals xxxx xxxx xxxx xxxx xxxx xxxx

Exchange adjustments

xxxx xxxx xxxx xxxx xxxx xxxx


Depreciation


Provided in the year


Disposals xxxx xxxx xxxx xxxx xxxx xxxx




Net book amount at 30 April 2016




Included within freehold property is land of £xxxx (2015: £xxxx), which is not depreciated.

Tangible fixed assets with a carrying value of £xxxx (2015: £xxxx) are pledged as security for the group's bank loans.

17.32(a) Sch 1.60

Computer equipment with a carrying value of £xxxx (2015: £xxxx) and motor vehicles with a carrying value of £xxxx (2015: £xxxx) are held under finance leases.

20.13(a)



The LLP

(£'000) Computer equipment

Furniture and equipment

Motor vehicles

Freehold property Total

17.31

Sch 1.49

Cost

At 1 May 2015 xxxx xxxx xxxx xxxx xxxx

Additions xxxx xxxx xxxx xxxx xxxx

Disposals xxxx xxxx xxxx xxxx xxxx


xxxx xxxx xxxx xxxx xxxx

At 30 April 2016 xxxx xxxx xxxx xxxx xxxx

Depreciation

At 1 May 2015 xxxx xxxx xxxx xxxx xxxx

Provided in the year xxxx xxxx xxxx xxxx xxxx

Disposals xxxx xxxx xxxx xxxx xxxx



At 30 April 2016 xxxx xxxx xxxx xxxx xxxx





Included within freehold property is land of £xxxx (2015: £xxxx), which is not depreciated.

Tangible fixed assets with a carrying value of £xxxx (2015: £xxxx) are pledged as security for the group's bank loans.

17.32(a) Sch 1.60

Computer equipment with a carrying value of £xxxx (2015: £xxxx) and motor vehicles with a carrying value of £xxxx (2015: £xxxx) are held under finance leases.

20.13(a)



11 Investments

Total fixed asset investments comprise:

(£'000)

The group The LLP

2016 2015 2016 2015

Interests in subsidiaries – – xxxx xxxx

Interests in associates xxxx xxxx xxxx xxxx

Other fixed asset investments xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx

Interests in subsidiaries

At 2016 the group and the LLP had interests in the following subsidiaries:

Subsidiaries Type of

shares held Proportion

held (%) Country of

incorporation Nature of

business

Sch 2.1 & 2.15

Service Co Limited Ordinary 80% United Kingdom Professional services

International Limited Ordinary 100% France Professional services



The LLP

(£'000) Investment in

subsidiaries

Sch 1.49

Cost

At 1 May 2015 xxxx

Additions in the year xxxx

At 30 April 2016 xxxx

Accumulated impairment

At 1 May 2015 xxxx

Impairment loss xxxx


Net book amount at 30 April 2016 xxxx

Net book amount at 30 April 2015 xxxx

Interests in associates

At 2016 the group and the LLP had interests in the following associates:

Associates Type of

shares held Proportion

held (%) Country of

incorporation

Sch 2.17

Munich AG Ordinary 25% Germany

The group

(£'000) Share of

net assets Loans Total

Sch 2.17


Share of profit for the year after taxation

xxxx - xxxx 14.14

Share of other comprehensive income xxxx - xxxx

At 30 April 2016 xxxx xxxx xxxx 14.12(b)



The LLP

(£'000) Investment in equity shares Loans Total

Sch 2.17

At 1 May 2015 and 30 April 2016 xxxx xxxx xxxx 14.12(b)

Other fixed asset investments

The group and LLP

(£'000) Unquoted

investments

Sch 1.49

Valuation

At 1 May 2015 xxxx

Change in value during the year xxxx




12 Debtors

(£'000)

The group The LLP

2016 2015 2016 2015

Trade debtors xxxx xxxx xxxx xxxx

Amounts recoverable on contracts xxxx xxxx xxxx xxxx

Amounts owed by subsidiary undertakings

– – xxxx xxxx

Amounts owed by associated undertakings

xxxx xxxx xxxx xxxx

Corporation tax xxxx xxxx xxxx xxxx

Derivatives xxxx xxxx xxxx xxxx

Prepayments and accrued income xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx

An impairment loss of £xxxx (2015: £xxxx) was recognised against trade debtors. 11.48(c)

13 Creditors: amounts falling due within one year

(£'000)

The group The LLP

2016 2015 2016 2015

Bank overdrafts xxxx xxxx xxxx xxxx

Bank loans xxxx xxxx xxxx xxxx

Finance lease obligations xxxx xxxx xxxx xxxx

Trade creditors xxxx xxxx xxxx xxxx

Amounts due to former members xxxx xxxx xxxx xxxx

Amounts owed to subsidiary undertakings

– – xxxx xxxx

Amounts owed to associated undertakings

xxxx xxxx xxxx xxxx

Taxation and social security xxxx xxxx xxxx xxxx

Corporation tax xxxx xxxx xxxx xxxx

Other creditors xxxx xxxx xxxx xxxx

Accruals and deferred income xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx



14 Creditors: amounts falling due after more than one year

(£'000)

The group The LLP

2016 2015 2016 2015

Finance lease obligations xxxx xxxx – –

Bank loans xxxx xxxx – –

xxxx xxxx – –

Bank loans are repayable as follows:

(£'000)

The group The LLP

2016 2015 2016 2015

Within one year xxxx xxxx xxxx xxxx

Between one to two years xxxx xxxx – –

Between two to five years xxxx xxxx – –

More than five years xxxx xxxx – – Sch 1.59

xxxx xxxx xxxx xxxx

The bank loans and overdrafts are secured against assets of the group and LLP. The group has a loan with 1st Paris Bank of £xxxx (2015: £xxxx). The loan is repayable over the period until xxxx. The interest rate on the loan is EURIBOR + XX%.

11.42 Sch 1.59

15 Provisions for liabilities

The group

(£'000)

Deferred taxation

(note 16) Leave

pay

Post retirement benefits for

former members Total

21.14(a) 29.23

Sch 1.57

At 1 May 2015 xxxx xxxx xxxx xxxx 14.12(b)

Additions - xxxx xxxx xxxx

Utilised - xxxx xxxx xxxx

Reversals - xxxx xxxx xxxx

Origination and reversal of timing differences

xxxx - - xxxx 29.26(c)

Changes in tax rates xxxx - - xxxx 29.26(d)

At 30 April 2016 xxxx xxxx xxxx xxxx



The LLP

(£'000) Leave pay Post retirement benefits

for former members Total

21.14(a)


Additions xxxx xxxx xxxx

Utilised xxxx xxxx xxxx

Reversals xxxx xxxx xxxx


The leave pay provision represents annual leave balances accrued as a result of services rendered in the current period and which employees are entitled to carry forward. The provision is measured as the salary cost payable for the period of absence.

21.14(b)

The principal actuarial assumptions which have been used in calculating the provision for post-retirement benefits to members are as follows:

(%pa) 2016 2015

Discount rate xx xx

Profit growth xx xx

Inflation rate xx xx

The discount rate of xx% (2015: xx%) is based on a weighted average cost of capital for the firm.

The assumed discount rate, inflation rate and profit growth increases, all have a significant effect on the provisions. The following table shows the sensitivity of the value of the post retirement benefit to changes in these assumptions, when applied to the provision at the year ended 30 April 2016.

Assumption Change in assumption Impact on provision (decrease)/increase

Discount rate Increase by x% xx

Profit growth Increase by x% xx

Inflation rate Increase by x% xx

Member profit share increase Increase by x% xx



16 Deferred taxation

Deferred taxation provided for at xx% (2015: xx%) in the financial statements is set out below:

(£'000)

The group

2016 2015

29.27(e)

Accelerated capital allowance xxxx xxxx

Derivative contracts xxxx xxxx

xxxx xxxx

The amount of the net reversal of deferred tax expected to occur next year is £xxxx (2015: £xxxx), relating to the reversal of existing timing differences on tangible fixed assets and derivative contracts and the origination of new timing differences on intangible fixed assets.

29.27(c)



17 Members' interests

The group

(£'000)

Equity Debt

Total members'

interests

Members' other interests

Loans and other debts due to members less any amounts due

from members in debtors

Members' Capital

(Classified as equity)

Foreign exchange

translation Reserve

Other Reserves Total

Members' Capital

(Classified as debt)

Other Amounts Total

Amounts due to members - - - - x x x x

Amounts due from members - - - - - (x) (x) (x)

Balance at 1 May 2014 x x x x x x x x

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

- - - - - x x x

Profit / (loss) for the financial year available for discretionary division among members

- - x x - - - x

Members' interests after profit / (loss) for the year

x x x x x x x x

Other divisions of profits - - (x) (x) - x x -


- - - - - - - -

Introduced by members x - - x x - x x

Repayments of capital (x) - - (x) (x) - (x) (x)

Repayments of debt (including members' capital classified as a liability)

- - - - (x) - (x) (x)

Drawings - - - - - (x) (x) (x)

Other movements x x x x x - x x



Balance at 30 April 2015 x x x x x x x x


- - - - - x x x


- - x x - - - x


x x x x x x x x



- - - - - - - -




- - - - (x) - (x) (x)

Drawings - - - - (x) (x) (x)







The LLP

(£'000)

Equity Debt

Total members'

interests

Members' other interests

Loans and other debts due to members less any amounts due

from members in debtors

Members' Capital

(Classified as equity)

Foreign exchange

translation Reserve

Other Reserves Total

Members' Capital

(Classified as debt)

Other Amounts Total

Amounts due to members - - - - - x x x


Balance at 1 May 2014 x x x x x x x x


- - - - - x x x


- - x x - - - x


x x x x x x x x





- - - - (x) - (x) (x)

Drawings - - - - - (x) (x) (x)






- - - - - x x x


- - x x - - - x


x x x x x x x x





- - - - (x) - (x) (x)

Drawings - - - - - (x) (x) (x)







The SORP requires the notes to the accounts to explain where amounts in ‘Loans and other debts due to members’ (other than members’ capital classified as debt) would rank in relation to other creditors who are unsecured in the event of a winding up. The notes should disclose details of any protection afforded to other creditors in such an event which is legally enforceable and cannot be revoked solely by a decision of the members. The notes should also disclose what restrictions or limitations exist on the ability of the members to reduce the amount of ‘Members’ other interests’ or state that there are no such restrictions. (SORP 63-67).

The capital (whether classified as a liability or equity) of an LLP may be reduced by agreement of the members either by repayment or by the conversion of equity capital into liability capital or other debt. In the absence of agreement to the contrary, unsecured debt due to members will rank equally with debts due to other unsecured creditors in a winding up.



18 Capital commitments

The group had capital commitments for Computer equipment of £xxxx (2015: £xxxx). 17.32(b)

Sch 1.60(3)

19 Leasing commitments

The group's future minimum operating lease payments are as follows:

(£'000) 2016 2015

20.16(a)

Within one year xxxx xxxx

Between one and five years xxxx xxxx

The group's future minimum finance lease payments are as follows:

(£'000) 2016 2015

20.13(b)



The LLP's future minimum finance lease payments are as follows:

(£'000) 2016 2015

20.13(b)



Certain computer equipment and motor vehicles are held under finance lease arrangements. Finance lease liabilities are secured by the related assets held under finance leases (see note 10). The lease agreements generally include fixed lease payments and a purchase option at the end of the lease term.

20.13(c)



20 Transactions with related parties

(£'000) 2016 2015

33.9

Sch 1.70

Sales to subsidiary (Service Co Limited) xxxx xxxx

Sales to associates xxxx xxxx

Purchases from associates xxxx xxxx

Interest received on loans to associates xxxx xxxx

Loans due from associated undertakings xxxx xxxx

Trade debtor amounts due from associates xxxx xxxx

Trade creditors amounts due to associates xxxx xxxx

Key management personnel compensation xxxx xxxx 33.7

Note: The exemption from disclosure of transactions with subsidiaries is only available where the subsidiary which is party to the transaction is wholly-owned.

Loans to associates are unsecured and at a fixed interest rate of XX%. A provision of £xxxx (2015: £xxxx) has been recognised against these loans.

33.9(b)(i)& (c)

The LLP has provided a guarantee of £xxxx (2015: £xxxx) in respect of the bank loan of a subsidiary. 21.17A

33.9(b)(ii)

The LLP does not have a parent undertaking. The ultimate controlling party of the group is considered to be the members in aggregate.

33.5

Sch 2.6 & 2.7



21 Financial risk management

The group has exposures to three main areas of risk - foreign exchange currency exposure, liquidity risk and customer credit exposure. To a lesser extent the group is exposed to interest rate risk.

11.48A(f)

Foreign exchange transactional currency exposure

The group is exposed to currency exchange rate risk due to a significant proportion of its receivables and operating expenses being denominated in non-Sterling currencies. The net exposure of each currency is monitored and managed by the use of forward foreign exchange contracts, currency loans or overdrafts. The forward foreign exchange contracts all mature within 12 months. The group's subsidiary, International Limited, is exposed to currency exchange risk arising from non-Euro currencies, but as this is not significant no active management of this risk is undertaken.

Liquidity risk

The objective of the group in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The group expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all the financial obligations the group has credit facilities available. Given the maturity of the bank loan in [note x], the group is in position to meet its commitments and obligations as they come due.

Customer credit exposure

The group may offer credit terms to its customers which allow payment of the debt after delivery of the goods or services. The group is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by the strong on-going customer relationships and by credit insurance.

Interest rate risk

The group borrows from its bankers using either overdrafts or term loans whose tenure depends on the nature of the asset and management's view of the future direction of interest rate.

22 Financial assets and liabilities

Group (£'000) 2016 2015

Financial assets measured at fair value through profit or loss

xxxx xxxx 11.41(a)

Financial assets measured at amortised cost xxxx xxxx 11.41(b)

Financial liabilities measured at amortised cost xxxx xxxx 11.41(e)

The fair value of unquoted investments is determined using an earnings multiple valuation model. Key assumptions used in the model includes the price earnings multiple used. This is determined by reference to the price earnings multiple of similar quoted companies.

11.43

Sch 1.53(2)(a)

The foreign currency forward contracts are not traded in active markets. These have been fair valued using observable forward exchange rates and interest rates corresponding to the maturity of the contract.

11.43

Sch 1.53(2)(a)



23 Transition to FRS 102

The LLP has adopted FRS 102 for the year ended 30 April 2016 and has restated the comparative prior year amounts.

35.12

Explanations

Changes for FRS 102 adoption

1. Foreign exchange forward contracts are now recognised at fair value at the end of the year with changes in fair value recognised in profit or loss. Previously foreign exchange contracts were not recognised in the statement of financial position.

2. The group now makes a provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use.

35.13(a)

Transition to FRS 102 - reconciliations

Restated consolidated statement of financial position (£'000) Explanation

30 April 2015

1 May 2014

35.13(b)

Original members' interests xxxx xxxx

Financial instruments at fair value 1 xxxx xxxx

Deferred tax on instruments at fair value xxxx xxxx

Leave pay accrual 2 xxxx xxxx

Restated members' interests xxxx xxxx

Restated LLP statement of financial position (£'000) Explanation

30 April 2015

1 May 2014

35.13.(b)

Original members' interests xxxx xxxx

Financial instruments at fair value 1 xxxx xxxx

Deferred tax on instruments at fair value xxxx xxxx

Leave pay accrual 2 xxxx xxxx

Restated members' interests xxxx xxxx

1 The above disclosures are not required where a multi-employer benefit plan is accounted for as a defined contribution plan in

accordance with 28.11 and 28.11A, for which the disclosures required by 28.40 and 28.40A apply instead. 2 Where the entity has more than one defined benefit plan these disclosures may be made in aggregate, separately for each plan or

in such groupings as are considered to be most useful.



Restated profit or loss for the year ended 30 April 2015 (£'000) Explanation

30 April 2015

35.13(b)

Original profit on ordinary activities before tax xxxx

Add financial instruments at fair value 1 xxxx

Impact of leave pay accrual 2 xxxx

xxxx

Original tax on ordinary activities xxxx

Deferred tax on financial instruments at fair value 1 xxxx

Restated tax on profit on ordinary activities xxxx

Restated profit for the financial year before members' interests and profit shares

xxxx

Appendix: FRS 102 LLP – Consolidated Statement of Comprehensive Income (one statement) |

For the year ended 30 April 2016


Appendix

Appendix: FRS 102 LLP – Consolidated Statement of Comprehensive Income (one statement) |

For the year ended 30 April 2016


(£'000) Note 2016 2015

Turnover xxxx xxxx 5.7C

Other operating income xxxx xxxx

xxxx xxxx

Other external charges (xxxx) (xxxx)

Staff costs (xxxx) (xxxx)

Depreciation (xxxx) (xxxx)

Other operating expenses (xxxx) (xxxx)

Operating profit xxxx xxxx 5.9B

Interest receivable and similar income xxxx xxxx 11.48(b) 23.30(b)(iii)

Interest payable and similar charges (xxxx) (xxxx) 11.48(b) Sch 1.63(1)

Tax on profit or loss on ordinary activities (xxxx) (xxxx)

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

xxxx xxxx

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

xxxx xxxx


(xxxx) (xxxx)


xxxx xxxx


Exchange differences on retranslation of foreign operations

xxxx xxxx

Total comprehensive income for the financial year

xxxx xxxx

Total comprehensive income for the financial year attributable to:

5.6(b)

Owners of the parent xxxx xxxx

Non-controlling interests xxxx xxxx

Appendix: FRS 102 LLP – Defined benefit pension scheme disclosures | For the year ended 30

April 2016


Foot note

The Group operates a defined benefit scheme in the UK. The scheme is available to certain senior employees after completing five years’ service and is funded by payment of contributions to separately administered trust funds.

1 28.41(a)

A full actuarial valuation was carried out as at 30 April 2016 2 28.41(d)

1 The disclosure required is a general description of the type of the plan, including funding policy.

2 If the valuation was not at the reporting date a description of the adjustments that were made to measure the defined benefit

obligation at the reporting date.


April 2016


(£'000) Foot note 2016

Reconciliation of opening and closing balances of the defined benefit obligation

3 28.41(e)(i)

Defined benefit obligation at start of period xxxx

Current service cost xxxx

Interest expense xxxx 28.41(f)(ii)

Contributions by plan participants xxxx 28.41(f)(i)

Actuarial losses (gains) xxxx 28.41(f)(iii)

Benefits paid xxxx

Liabilities acquired in a business combination xxxx

Liabilities extinguished on settlements xxxx 28.41(f)(iv)

Losses (gains) on curtailments xxxx 28.41(f)(iv)

Losses (gains) due to benefit changes xxxx 28.41(f)(iv)

Defined benefit obligation at end of period xxxx

Reconciliation of opening and closing balances of the fair value of plan assets

28.41(e)(ii)

Fair value of plan assets at start of period xxxx

Interest income xxxx 28.41f(ii)

Actuarial gains (losses) xxxx 28.41f(iii)

Return on plan assets in excess of interest income xxxx

Contributions by the group xxxx

Contributions by plan participants xxxx 28.41f(i)

Benefits paid xxxx

Assets acquired in a business combination xxxx

Assets distributed on settlements xxxx 28.41f(iv)

Fair value of plan assets at end of period xxxx

The actual return on plan assets over the period ending 30 April 2016 was £X.

28.41(j)

3 Comparative reconciliation is not required.


April 2016


(£'000) Foot note 2016 2015

Defined benefit costs recognised in profit or loss

28.41(g)(i)

Current service cost xxxx xxxx

Net interest cost xxxx xxxx

Losses (gains) on business combinations xxxx xxxx

Losses (gains) on settlements xxxx xxxx

Losses (gains) on curtailments xxxx xxxx

Losses (gains) due to benefit changes xxxx xxxx

Defined benefit costs recognised in profit and loss account

xxxx xxxx

Defined benefit costs recognised in Other Comprehensive Income

4

Return on plan assets (excluding amounts included in net interest cost) - gain (loss)

xxxx xxxx

Experience gains and losses on the plan liabilities - gain (loss)

xxxx xxxx

Effects of changes in the demographic and financial assumptions underlying the present value of the plan liabilities - gain (loss)

xxxx xxxx

Total actuarial gains and losses (before restriction due to some of the surplus not being recognisable) - gain (loss)

xxxx xxxx

Effect of limit on amount of surplus recognised due to some of the surplus not being recognisable - gain (loss)

xxxx xxxx

Total amount recognised in other comprehensive income - gain (loss)

xxxx xxxx

4 This disclosure is not specifically required by the standard, but has been included as additional disclosure.


April 2016


Assets (%) Foot note 2016 2015

28.41(h)

UK Equities x x

Overseas Equities x x

Corporate Bonds x x

Government Bonds x x

Diversified Growth Funds x x

Property x x

Cash x x

Other x x

Total assets 100% 100%

None of the fair values of the assets shown above include any of the group's own financial instruments or any property occupied by, or other assets used by the group.

Assumptions Foot note 2016 2015

Discount rate (%) x x 28.41k(i)

Salary growth rate (%) x x 28.41k(ii)

Average life expectancies male (years) x x 28.41k(v)

Average life expectancies female (years) x x 28.41k(v)

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