REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31 December 2022 |
for |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION |
COMPANY LIMITED BY GUARANTEE |
REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31 December 2022 |
for |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION |
COMPANY LIMITED BY GUARANTEE |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION (REGISTERED NUMBER: 02047647) |
COMPANY LIMITED BY GUARANTEE |
Contents of the Financial Statements |
for the year ended 31 December 2022 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION |
COMPANY LIMITED BY GUARANTEE |
Company Information |
for the year ended 31 December 2022 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Chartered Accountants |
Statutory Auditor |
Aissela |
46 High Street |
Esher |
Surrey |
KT10 9QY |
Bankers: |
Holborn Branch |
31 Holborn |
London |
EC1N 2HR |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION (REGISTERED NUMBER: 02047647) |
COMPANY LIMITED BY GUARANTEE |
Balance Sheet |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 5 |
Tangible assets | 6 |
Investments | 7 |
Current assets |
Debtors | 8 |
Cash at bank | 9 |
Creditors |
Amounts falling due within one year | 10 |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 12 |
Net assets |
Reserves |
Income and expenditure account |
Members' funds |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION (REGISTERED NUMBER: 02047647) |
COMPANY LIMITED BY GUARANTEE |
Notes to the Financial Statements |
for the year ended 31 December 2022 |
1. | Statutory information |
The London Court of International Arbitration is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Accounting policies |
Basis of preparing the financial statements |
Going concern |
The financial statements have been prepared on a going concern basis. |
The directors have considered the budget of the company for the year ended 31 December 2023 and anticipated performance beyond that date together with current cash balances available to the company. |
Based on these considerations the directors are of the opinion that the company is able to meet its liabilities as and when they fall due over the next 12 months from the date of signing of the financial statements. Consequently the company continues to adopt a going concern basis of accounting in preparing the annual financial statements. |
Group accounts |
The company is entitled to the exemption under Section 398 of the Companies Act 2006 from the obligation to prepare group accounts. |
Key sources of estimation, uncertainty and judgement |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
There is estimation uncertainty in calculating depreciation. Whilst every attempt is made to ensure that the depreciation policy is accurate, there remains a risk that the policy does not match the useful life of the assets. |
Income |
Income represents the total value, excluding value added tax, of amounts generated in connection with the |
principal activities of the organisation. |
Case work income represents the value of work done in the year, including work in progress not invoiced at the year end. |
Conference and membership income represents income receivable for conferences and membership within the current year. Amounts received in advance for future conferences or membership are deferred and included in deferred income within creditors. |
Other income represents income received or invoiced and receivable at the year end. |
Intangible fixed assets |
Copyrights are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful life of 4 years. |
Computer software are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful life of 3 years once they have been brought into use. |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION (REGISTERED NUMBER: 02047647) |
COMPANY LIMITED BY GUARANTEE |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
2. | Accounting policies - continued |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
Financial instruments |
Financial assets such as cash and debtors are measured at the present value of the amounts receivable, less an allowance for the expected level of doubtful receivables. Financial liabilities such as trade creditors are measured at the present value of the obligation. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating result. |
Leasing commitments |
Rentals payable under operating leases are charged against income on a straight line basis over the term of the lease. |
Pension costs |
The company provides the Director General and employees with the benefit of a defined contribution pension which is paid into either the company pension scheme or a scheme of their choice. The schemes are managed by, and their assets are held by, independent managers. The pension charge represents contributions due from the company and amounted to £215,904 (2021: £180,955). |
Contributions payable to the company's pension scheme are charged in the period to which they relate. |
Investments |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
The other fixed asset investments are stated at cost, taking consideration of diminution in value, until a reliable measure of fair value becomes available. |
3. | Employees and directors |
The average number of employees during the year was |
4. | Auditors' remuneration |
Fees payable to the company's auditors for the audit of the company's financial statements are £14,250 (2021: £12,250) |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION (REGISTERED NUMBER: 02047647) |
COMPANY LIMITED BY GUARANTEE |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
5. | Intangible fixed assets |
Computer |
Copyright | software | Totals |
£ | £ | £ |
Cost |
At 1 January 2022 |
Additions |
At 31 December 2022 |
Amortisation |
At 1 January 2022 |
Amortisation for year |
At 31 December 2022 |
Net book value |
At 31 December 2022 |
At 31 December 2021 |
6. | Tangible fixed assets |
Fixtures |
Short | and | Computer |
leasehold | fittings | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2022 |
Additions |
At 31 December 2022 |
Depreciation |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
Net book value |
At 31 December 2022 |
At 31 December 2021 |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION (REGISTERED NUMBER: 02047647) |
COMPANY LIMITED BY GUARANTEE |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
7. | Fixed asset investments |
Shares in |
group | Other |
undertakings | investments | Totals |
£ | £ | £ |
Cost |
At 1 January 2022 |
and 31 December 2022 | 1,453,718 |
Provisions |
At 1 January 2022 |
and 31 December 2022 | 1,329,368 | - | 1,329,368 |
Net book value |
At 31 December 2022 | 124,350 |
At 31 December 2021 | 124,350 |
The group undertakings comprises LCIA (India) Private Limited at a cost of £1,329,368 and LCIA (Overseas) Limited at a cost of £1,000. |
The investment in LCIA (India) Private Limited has been valued by the directors at £Nil (2021: £Nil) as the subsidiary is operating on a reduced number of cases and it is not expected to produce a profit . |
The other investment is in a company providing a London based international hearing centre, the International Dispute Resolution Centre. |
8. | Debtors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amount recoverable on casework |
Other debtors |
Prepayments and accrued income |
9. | Cash at bank |
2022 | 2021 |
£ | £ |
Office accounts | 10,160,757 | 8,094,360 |
Third party funds held for proceedings on a debtor creditor basis | 22,902,054 | 8,626,834 |
Third party funds held in trust | 25,755,211 | 36,565,321 |
58,818,022 | 53,286,515 |
See note 15 for details of third party funds held. |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION (REGISTERED NUMBER: 02047647) |
COMPANY LIMITED BY GUARANTEE |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
10. | Creditors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Trade creditors | 98,478 | 79,544 |
Amounts owed to group undertakings | 1,000 | 1,000 |
Corporation tax | 208,208 | 87,393 |
Social security and other taxes | 98,770 | 78,839 |
Client accounts | 25,454,605 | 36,227,460 |
Amounts received in advance for payment of costs | 22,554,586 | 8,432,415 |
Pensions costs | 20,483 | 19,918 |
Accruals and deferred income | 1,826,104 | 1,128,346 |
50,262,234 | 46,054,915 |
Client accounts represent third party funds held in trust as follows: |
- Cash at bank | 25,755,211 | 36,565,321 |
- Less funds held on account of work in progress | (300,606 | ) | (337,861 | ) |
25,454,605 | 36,227,460 |
Amounts received in advance for payment of costs represent third party funds held on a debtor creditors basis as follows: |
- Cash at bank | 22,902,054 | 8,626,834 |
- Less funds held on account of work in progress | (347,468 | ) | (194,419 | ) |
22,554,586 | 8,432,415 |
See note 15 for details of third party funds held. |
11. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
12. | Provisions for liabilities |
2022 | 2021 |
£ | £ |
Deferred tax | 172,415 | 133,385 |
Deferred tax |
£ |
Balance at 1 January 2022 |
Provided during year |
Balance at 31 December 2022 |
THE LONDON COURT OF INTERNATIONAL |
ARBITRATION (REGISTERED NUMBER: 02047647) |
COMPANY LIMITED BY GUARANTEE |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
13. | Disclosure under Section 444(5B) of the Companies Act 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
14. | Ultimate controlling party |
The company is limited by guarantee, there is no controlling member. |
15. | Limited by guarantee |
The company is limited by guarantee and the guarantee amounts to £100 per member. |
16. | Third party funds held |
In accordance with the express provisions of the LCIA Rules, to which parties subscribe when referring their disputes to the LCIA for arbitration or mediation, the parties must lodge funds on account of the fees and expenses of the tribunal and of the LCIA, to allow the matter to proceed. These funds are held in client bank accounts which are controlled by reference to each individual case and disbursed by the LCIA, in settlement of the costs of the arbitration, in accordance with its rules. In the event that funds lodged by the parties exceed those costs at the conclusion of the proceedings, surplus monies will be returned to the parties. |
At the year end, amounts held on a debtor creditor basis in client bank accounts amounted to £17,545,188 (2021: £8,626,834). In addition, there was also £5,356,866 held at the year end in relation to arbitrations administered pursuant to the DIFC-LCIA Rules. |
At the year end, deposits held on trust in client bank accounts amounted to £14,202,323 (2021: £23,684,725). There were also deposits held at the year end of £37,086 (2021: £322,490) as security for the value of claims to be determined. |
A parallel service is offered in arbitrations that are not conducted pursuant to the LCIA Rules, but in which, with the agreement of the parties and the tribunal, the LCIA is designated as fund holder, holding such funds on the same basis as in LCIA cases and distributing them on the order of the tribunal. As at the year end, £11,515,802 (2021: £12,558,106) was held on account by the LCIA for these purposes. |