Bower Cotton Hamilton LLP Filleted accounts for Companies House (small and micro)

BOWER COTTON HAMILTON LLP - Company Information

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REGISTERED NUMBER: OC392435

BOWER COTTON HAMILTON LLP

FILLETED UNAUDITED FINANCIAL STATEMENTS

31 December 2020

BOWER COTTON HAMILTON LLP

STATEMENT OF FINANCIAL POSITION

31 December 2020

	2020		2019
Note	£	£	£

Fixed assets

Intangible assets	5	83,854	90,104
Tangible assets	6	4,026	5,090
		---------	---------
		87,880	95,194

Current assets

Debtors	7	1,021,711	534,624
Cash at bank and in hand		91,790	64,527
		-------------	----------
		1,113,501	599,151

Creditors: amounts falling due within one year	8	743,086		380,915
		-------------		----------
Net current assets			370,415	218,236
			----------	----------
Total assets less current liabilities			458,295	313,430

Creditors: amounts falling due after more than one year	9	293,380	119,967
		----------	----------
Net assets		164,915	193,463
		----------	----------

Represented by:

Loans and other debts due to members

Other amounts	10	164,915	193,463
		----------	----------

Members' other interests

Other reserves	–	–
	----------	----------
	164,915	193,463
	----------	----------

Total members' interests

Amounts due from members		(58,371)	(197,671)
Loans and other debts due to members	10	164,915	193,463
Members' other interests		–	–
		----------	----------
		106,544	(4,208)
		----------	----------

These financial statements have been prepared and delivered in accordance with the provisions applicable to LLPs subject to the small LLPs' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006 (as applied to LLPs), the statement of comprehensive income has not been delivered.

BOWER COTTON HAMILTON LLP

STATEMENT OF FINANCIAL POSITION (continued)

31 December 2020

For the year ending 31 December 2020 the LLP 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 LLPs.

The members acknowledge their responsibilities for complying with the requirements of the Act (as applied to LLPs) with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the members and authorised for issue on 22 December 2021 , and are signed on their behalf by:

D P Rivers

Designated Member

Registered number: OC392435

BOWER COTTON HAMILTON LLP

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

1.	General information

The LLP is registered in England and Wales. The address of the registered office is 34 Ely Place, London, EC1N 6TD, England.

2.	Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', and the requirements of the Statement of Recommended Practice 'Accounting by Limited Liability Partnerships' issued in December 2018 (SORP 2018).

3.	Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis .

Going concern

No material uncertainties that may cast significant doubt about the ability of the LLP to continue as a going concern has been identified by the designated members.

Going concern

The members consider that the uncertainty caused as a result of coronavirus and the restrictions put in place by the government should not materially affect the LLP's ability to continue as a going concern. The LLP may take advantage of the support packages offered by the government, as appropriate and will continue to review and monitor costs as the situation develops.

Revenue recognition

The turnover shown in the profit and loss account represents fees receivable during the year exclusive of Value Added Tax. The LLP accrues for incomes due under contractual obligations that are yet to be invoiced, excluding Value Added Tax. The value of such incomes are proportional to the stage of completion of the respective assignment. Where there are doubts with respect of recoverability of uninvoiced incomes, then no accrual for income is made.

Members' participation rights

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed, remuneration and profits).

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with Section 22 of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', and the requirements of the Statement of Recommended Practice 'Accounting by Limited Liability Partnerships'. A member's participation right results in a liability unless the right to any payment is discretionary on the part of the LLP.

Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.

Where profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment, the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense in the statement of comprehensive income in the relevant year. To the extent that they remain unpaid at the year end, they are shown as liabilities in the statement of financial position.

Conversely, where profits are divided only after a decision by the LLP or its representative, so that the LLP has an unconditional right to refuse payment, such profits are classed as an appropriation of equity 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 are equity appropriations in the statement of financial position.

Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment.

All amounts due to members that are classified as liabilities are presented in the statement of financial position within 'Loans and other debts due to members' and are charged to the statement of comprehensive income within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the statement of financial position within 'Members' other interests'.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	5% straight line

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

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings	-	25% reducing balance
Equipment	-	25% reducing balance

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4.	Employee numbers

The average number of persons employed by the LLP during the year, including the members with contracts of employment, amounted to 14 (2019: 7 ).

5.	Intangible assets

	Goodwill
	£
Cost
At 1 January 2020 and 31 December 2020	125,000
	----------
Amortisation
At 1 January 2020	34,896
Charge for the year	6,250
	----------
At 31 December 2020	41,146
	----------
Carrying amount
At 31 December 2020	83,854
	----------
At 31 December 2019	90,104
	----------

The intangible asset represents the goodwill, valued at cost and not revalued, generated as a result of the purchase of a solicitor practice trade and respective business assets. The members consider the asset to have a useful economic life of 20 years from date of purchase.

6.	Tangible assets

	Fixtures and fittings	Equipment	Total
	£	£	£
Cost
At 1 January 2020	4,649	16,216	20,865
Additions	278	–	278
	-------	---------	---------
At 31 December 2020	4,927	16,216	21,143
	-------	---------	---------
Depreciation
At 1 January 2020	3,707	12,068	15,775
Charge for the year	305	1,037	1,342
	-------	---------	---------
At 31 December 2020	4,012	13,105	17,117
	-------	---------	---------
Carrying amount
At 31 December 2020	915	3,111	4,026
	-------	---------	---------
At 31 December 2019	942	4,148	5,090
	-------	---------	---------

7.	Debtors

	2020	2019
	£	£
Trade debtors	530,681	199,985
Other debtors	491,030	334,639
	-------------	----------
	1,021,711	534,624
	-------------	----------

Included within other debtors is an amount due from LLP member Mr R Harris of £58,371 (2019 £58,371). Included within other debtors ia an amount due from an LLP ex-member Mr J Jacob (dec'd) of £135,457. In the previous year an amount of £139,300 was repayable to the LLP and included within other debtors as amounts due from members.

8. Creditors: amounts falling due within one year

	2020	2019
	£	£
Bank loans and overdrafts	29,661	–
Trade creditors	84,060	9,832
Social security and other taxes	352,678	74,069
Other creditors	276,687	297,014
	----------	----------
	743,086	380,915
	----------	----------

9. Creditors: amounts falling due after more than one year

	2020	2019
	£	£
Bank loans and overdrafts	220,339	–
Other creditors	73,041	119,967
	----------	----------
	293,380	119,967
	----------	----------

10.	Loans and other debts due to members

	2020	2019
	£	£
Amounts owed to members in respect of profits	164,915	193,463
	----------	----------

11.	Related party transactions

Mr D Rivers is the senior partner of the LLP and is the controlling party as defined by FRS 102.