REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
DOWNS SOLICITORS LLP |
REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
DOWNS SOLICITORS LLP |
DOWNS SOLICITORS LLP (REGISTERED NUMBER: OC321831) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
Page |
Statement of Financial Position | 1 |
Notes to the Financial Statements | 3 |
DOWNS SOLICITORS LLP (REGISTERED NUMBER: OC321831) |
STATEMENT OF FINANCIAL POSITION |
30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 5 |
Tangible assets | 6 |
Investments | 7 |
CURRENT ASSETS |
Debtors | 8 |
Accrued income |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
and |
NET ASSETS ATTRIBUTABLE TO MEMBERS |
1,488,868 |
1,781,410 |
LOANS AND OTHER DEBTS DUE TO MEMBERS |
11 |
841,367 |
1,146,408 |
MEMBERS' OTHER INTERESTS |
Capital accounts | 647,501 | 635,002 |
1,488,868 | 1,781,410 |
TOTAL MEMBERS' INTERESTS |
Loans and other debts due to members | 11 | 841,367 | 1,146,408 |
Members' other interests | 647,501 | 635,002 |
Amounts due from members | 8 | (34,534 | ) | - |
1,454,334 | 1,781,410 |
The members acknowledge their responsibilities for: |
(a) | ensuring that the LLP keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the LLP as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply 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 relating to financial statements, so far as applicable to the LLP. |
DOWNS SOLICITORS LLP (REGISTERED NUMBER: OC321831) |
STATEMENT OF FINANCIAL POSITION - continued |
30 JUNE 2023 |
In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Statement of Comprehensive Income has not been delivered. |
The financial statements were approved by the members of the LLP and authorised for issue on |
DOWNS SOLICITORS LLP (REGISTERED NUMBER: OC321831) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | STATUTORY INFORMATION |
Downs Solicitors LLP is registered in England and Wales. The LLP's registered number and registered office address are as below: |
Registered number: |
Registered office: |
The presentation currency of the financial statements is the Pound Sterling (£). |
All amounts in the financial statements have been rounded to the nearest £. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on the going concern basis, which assumes that the LLP will continue in operational existence for the foreseeable future. Based on current and projected trading information for a period in excess of 12 months from the date of approval of these financial statements, the members expect that the LLP will have sufficient cash resources available to continue to trade for the foreseeable future. |
Preparation of consolidated financial statements |
The financial statements contain information about Downs Solicitors LLP as an individual LLP and do not contain consolidated financial information as the parent of a group. The LLP has taken the option under Section 398 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 not to prepare consolidated financial statements. |
Related party exemption |
The LLP has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
DOWNS SOLICITORS LLP (REGISTERED NUMBER: OC321831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In preparing these financial statements, the members have made the following judgements: |
- Determine whether leases entered into by the LLP either as a lessor or a lessee are operating lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. |
- Determine whether there are indicators of impairment of the LLP's tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. At each reporting period date, the LLP reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. |
- Determine whether there is a likelihood that some of the trade debtors' balances will not be recovered. A bad debt review is carried out quarterly where the debts outstanding are assessed for their recoverability and when this is considered to be uncertain the amount is provided against. |
- Determine what the amount recoverable on contracts is likely to be based on time records of the staff and partners. A year end report is circulated to all fee earners to identify the likely recoverable amount. |
- Determine the provision for client claims based on an assessment of the potential claims at the year end and their likely outcome. |
Other key sources of estimation uncertainty |
Tangible fixed assets |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
Turnover and income recognition |
Turnover represents the right to consideration earned in respect of legal services performed during the year, net of VAT and any discounts given to clients. Income is recognised as contract activity progresses and the right to consideration is secured. |
If the right to consideration is conditional or contingent on a specified future event or outcome, the occurrence of which is outside the control of the firm, then the revenue is not recognised until that event occurs. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of businesses in 2013 and 2015, is being amortised evenly over its estimated useful life. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets held for the LLP's own use are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Plant and machinery etc | - 25% on cost and 10% on cost |
DOWNS SOLICITORS LLP (REGISTERED NUMBER: OC321831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Basic financial assets, which include trade debtors, other debtors, accrued income, cash and bank balances, investments in shares are initially measured at the transaction price including transaction costs and are subsequently recognised at amortised cost. |
Basic financial liabilities, including trade creditors, loans from fellow group companies, bank loans and other creditors, are initially recognised at transaction price and are subsequently recognised at amortised cost. |
Debt instruments are subsequently carried at amortised cost, using the effective interest method. |
The LLP has no financial assets or financial liabilities measured at fair value. Although the LLP has external borrowings it is not exposed to risk arising from the interest rate benchmark reform as LIBOR is replaced with alternative benchmark interest rates, all of the borrowings are at a fixed interest rate. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Where assets are financed by leasing agreements that give rights approximately to ownership (finance leases), the assets are treated as if they has been purchased outright. The amount capitalised is the present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to profit or loss over the shorter of estimated useful economic life and the term of the lease. |
Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to profit or loss over the term of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor. |
Pension costs |
The LLP operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the LLP. The annual contributions payable are charged to the profit and loss account. |
The LLP makes no post retirement payments to members. |
Accrued income |
Accrued income comprises unbilled fee income where the LLP has a right to consideration on work already undertaken at the year end but which has not yet been billed. |
Taxation |
The taxation payable on the LLP's profits is the personal liability of the Members. Consequently, the partnership taxation nor the related deferred taxation is accounted for in these financial statements. |
DOWNS SOLICITORS LLP (REGISTERED NUMBER: OC321831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Holiday pay accrual |
A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date. |
4. | EMPLOYEE INFORMATION |
The average number of employees during the year was |
5. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
AMORTISATION |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
6. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
DOWNS SOLICITORS LLP (REGISTERED NUMBER: OC321831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
7. | FIXED ASSET INVESTMENTS |
Other |
investments |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Taxation and social security |
Other creditors |
10. | LEASING AGREEMENTS |
At the balance sheet date the LLP had total commitments under non-cancellable operating leases over the remaining life of those leases of £903,186 (2022: £952,176). |
11. | LOANS AND OTHER DEBTS DUE TO MEMBERS |
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. |