TWO_NFL_LLP - Accounts

The members of the limited liability partnership have elected not to include a copy of the profit and loss account within the financial statements.

For the financial year ended 31 March 2022 the Partnership was entitled to exemption from audit under section 477 of the Companies Act 2006 (as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) relating to small limited liability partnerships.

The members acknowledge their responsibilities for complying with the requirements of the Act (as applied to limited liability partnerships) with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

Two NFL LLP is a limited liability partnership incorporated in England and Wales. The registered office is Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT.

The Partnership's principal activities are disclosed in the Members' Report.

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the Partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The members have a reasonable expectation that the Partnership has adequate resources to continue in operational existence for the foreseeable future. The Partnership therefore continues to adopt the going concern basis in preparing its financial statements.

Amounts subscribed or otherwise contributed by members are only repaid by the Partnership when a member ceases to be a member at the discretion of the Remuneration Committee in accordance with the amended and restated Limited Liability Partnership agreement dated 8 November 2007. The capital contributions have therefore been classified as equity rather than financial liabilities in accordance with Section 22 of FRS 102.

Where profits are divided only after a decision by the Partnership or its representative, so that the Partnership has an unconditional right to refuse payment, such profits are classed as an appropriation of profits rather than as an expense. They are therefore shown as a residual amount available for discretionary division among members in the Statement of Comprehensive Income and as other reserves in the Balance Sheet.

Where the Partnership incurs a loss, no member shall be obliged to make any further capital or loan contribution to the Partnership to cover any loss allocated to the members which may be allocated at the absolute discretion of the Management Committee of the Partnership.

All amounts due to members that are classified as liabilities are presented in the Balance Sheet within 'Loans and other debts due to Members' and are charged to the Income Statement within 'Members' remuneration charged as an expense'. Amounts due to Members that are classified as equity are shown in the Balance Sheet within 'Members' other interests'.

In accordance with Section 14 of FRS 102, the Partnership accounts for its investment in associate undertaking using the equity method. Under the equity method of accounting, an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investor’s share of the profit or loss, other comprehensive income and equity of the associate. The investment in the associate is valued with reference to the share of net assets of the associate at the year end. The movement in valuation is disclosed as share of profit in associates in the Profit and Loss Account.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the Partnership holds a long-term interest and where the Partnership has significant influence. The Partnership considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The Partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Partnership's statement of financial position when the Partnership becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities include loans from fellow group companies which are initially recognised at transaction price and subsequently measured at amortised cost. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

In the application of the Partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The average number of persons (excluding members) employed by the partnership during the year was:

The investment represents capital contributions made to One NFL LLP.

The amounts owed to group undertakings are interest free and repayable on demand.

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

All the members are related parties as a result of their membership of Two NFL LLP. All the members play a part in the management of the Partnership and it is not controlled by any entity, individual or group of individuals who are not members. Two NFL LLP is also a member of One NFL Group and has 25% of the voting rights of that group. There is no ultimate controlling party of the Partnership.