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Financial Statements for the Year Ended 31st July 2020 |
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CORNERSTONE ASSET MANAGEMENT LLP |
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REGISTERED NUMBER:
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Financial Statements for the Year Ended 31st July 2020 |
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for |
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CORNERSTONE ASSET MANAGEMENT LLP |
CORNERSTONE ASSET MANAGEMENT LLP (REGISTERED NUMBER: SO302894) |
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Contents of the Financial Statements |
for the Year Ended 31st July 2020 |
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Page |
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General Information | 1 |
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Statement of Financial Position | 2 |
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Notes to the Financial Statements | 4 |
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CORNERSTONE ASSET MANAGEMENT LLP |
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General Information |
for the Year Ended 31st July 2020 |
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DESIGNATED MEMBERS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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INDEPENDENT AUDITORS : |
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Statutory Auditor |
Chartered Accountants |
Titanium 1 |
King's Inch Place |
Renfrew |
PA4 8WF |
CORNERSTONE ASSET MANAGEMENT LLP (REGISTERED NUMBER: SO302894) |
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Statement of Financial Position |
31st July 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Debtors | 5 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 6 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
7 |
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NET ASSETS ATTRIBUTABLE TO
MEMBERS |
559,888 |
573,664 |
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LOANS AND OTHER DEBTS DUE TO
MEMBERS |
9 |
509,888 |
523,664 |
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MEMBERS' OTHER INTERESTS |
Capital accounts | 50,000 | 50,000 |
559,888 | 573,664 |
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TOTAL MEMBERS' INTERESTS |
Loans and other debts due to members | 9 | 509,888 | 523,664 |
Members' other interests | 50,000 | 50,000 |
559,888 | 573,664 |
CORNERSTONE ASSET MANAGEMENT LLP (REGISTERED NUMBER: SO302894) |
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Statement of Financial Position - continued |
31st July 2020 |
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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 Income Statement has not been delivered. |
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The financial statements were approved and authorised for issue by the members of the LLP and authorised for issue
on |
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CORNERSTONE ASSET MANAGEMENT LLP (REGISTERED NUMBER: SO302894) |
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Notes to the Financial Statements |
for the Year Ended 31st July 2020 |
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1. | STATUTORY INFORMATION |
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Cornerstone Asset Management LLP is registered in Scotland. The LLP's registered number and registered |
office address can be found on the General Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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Monetary amounts in these financial statements are rounded to the nearest £. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The disclosure requirements of Section 1A of Financial Reporting Standard 102 have been applied other than |
where additional disclosure is required to show a true and fair view. |
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The principal accounting policies adopted are set out below. |
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Critical accounting judgements and key sources of estimation uncertainty |
In the application of the limited liability 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. |
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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. |
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Turnover |
Turnover comprises the fees, net of clawbacks and commission payable, receivable in respect of services |
provided by the LLP. Income is recognised over the period in which fees are earned. |
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Tangible fixed assets |
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Improvements to property | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of |
depreciation and any impairment losses. |
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The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds |
and the carrying value of the asset, and is recognised in the income statement. |
CORNERSTONE ASSET MANAGEMENT LLP (REGISTERED NUMBER: SO302894) |
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Notes to the Financial Statements - continued |
for the Year Ended 31st July 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The limited liability 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. |
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Financial instruments are recognised in the limited liability partnership's statement of financial position when |
the limited liability partnership becomes party to the contractual provisions of the instrument. |
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Financial assets and liabilities are offset and the net amounts presented in the financial statements when there |
is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis |
or to realise the asset and settle the liability simultaneously. |
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Basic financial assets |
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. |
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Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of |
impairment at each reporting end date. |
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Financial assets are impaired where there is objective evidence that, as a result of one or more events that |
occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. |
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value |
of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is |
recognised in profit or loss. |
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If there is a decrease in the impairment loss arising from an event occurring after the impairment was |
recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed |
what the carrying amount would have been, had the impairment not previously been recognised. The |
impairment reversal is recognised in profit or loss. |
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Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or |
are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks |
and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained |
but control of the asset has transferred to another party that is able to sell the asset in its entirety to an |
unrelated third party. |
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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 limited liability partnership after deducting all of its liabilities. |
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Basic financial liabilities |
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference |
shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes |
a financing transaction, where the debt instrument is measured at the present value of the future payments |
discounted at a market rate of interest. Financial liabilities classified as payable within one year are not |
amortised. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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CORNERSTONE ASSET MANAGEMENT LLP (REGISTERED NUMBER: SO302894) |
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Notes to the Financial Statements - continued |
for the Year Ended 31st July 2020 |
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2. | ACCOUNTING POLICIES - continued |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of |
business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year |
or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at |
transaction price and subsequently measured at amortised cost using the effective interest method. |
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Derecognition of financial liabilities |
Financial liabilities are derecognised when the limited liability partnership's obligations expire or are |
discharged or cancelled. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases, including any lease incentives received, are charged to profit or loss on a |
straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The LLP operates a defined contribution pension scheme. The assets of the scheme are held separately from |
those of the LLP. Contributions payable to the LLP's pension scheme are charged to profit or loss in the period |
to which they relate. |
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Going concern |
The members are required to prepare the statutory financial statements on the going concern basis unless it is |
inappropriate to presume that the LLP will continue in business. In satisfaction of this responsibility the |
members have considered the LLP's ability to meet its liabilities as they fall due. |
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The LLP has carefully considered the recent COVID-19 outbreak and the associated impact on the business. |
These risks include: |
- a fall in revenue and decreasing cash flow due to falls in global markets and reduced opportunities to win |
new business; |
- interruption in client engagement for a period due to either contracting the virus or measures taken to contain |
the outbreak. |
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Although it is not possible to reliably estimate the length or severity of the outbreak, at the date of signing, the |
LLP’s operations have not been significantly adversely affected by the COVID-19 pandemic. The LLP has |
taken steps to deal with the risks presented and is actively managing its cost base to operate within current and |
forecast income levels. The business remains profitable and cash generative since the start of the outbreak. The |
members acknowledge the position could change suddenly depending on how the situation evolves. |
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The current and future financial position of the LLP, its cash flows and liquidity position have been reviewed |
by the members. This review includes scenario analysis with various assumptions applied to the forecast cash |
flows. The members are confident that the existing funding facilities and security of income provide sufficient |
headroom to meet the forecast cash requirements having considered any additional requirements that would be |
contingent on a downturn in activity (specifically in relation to the COVID-19 pandemic). |
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As such, the members consider that it is appropriate to prepare the financial statements on the going concern |
basis. |
CORNERSTONE ASSET MANAGEMENT LLP (REGISTERED NUMBER: SO302894) |
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Notes to the Financial Statements - continued |
for the Year Ended 31st July 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Members' participating interests |
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). |
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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. A member's |
participation rights including amounts subscribed or otherwise contributed by members, for example members' |
capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in |
which case they are classified as equity. |
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All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to |
members' and, where such an amount relates to current year profits, they are recognised within 'Members' |
remuneration charged as an expense' in arriving at the relevant year's result. Undivided amounts that are |
classified as equity are shown within 'Members' other interests'. Amounts recoverable from members are |
presented as debtors and shown as amounts due from members within members' interests. |
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Where there exists an asset and liability component in respect of an individual member's participation rights, |
they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised |
amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in |
which case they are presented net. |
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Profits are divided as per the members' agreement, so the LLP does not have an unconditional right to refuse |
payment and the amounts arising that are due to members are in the nature of liabilities. They are therefore |
treated as an expense and presented as members remuneration charged as an expense in arriving at the result |
for the relevant year. To the extent that they remain unpaid at the period end, they are shown as liabilities. |
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3. | EMPLOYEE INFORMATION |
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The average number of employees during the year was
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4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
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COST |
At 1st August 2019 |
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Additions |
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At 31st July 2020 |
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DEPRECIATION |
At 1st August 2019 |
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Charge for year |
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At 31st July 2020 |
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NET BOOK VALUE |
At 31st July 2020 |
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At 31st July 2019 |
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CORNERSTONE ASSET MANAGEMENT LLP (REGISTERED NUMBER: SO302894) |
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Notes to the Financial Statements - continued |
for the Year Ended 31st July 2020 |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
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Other debtors |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade creditors |
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Taxation and social security |
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Other creditors |
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7. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2020 | 2019 |
£ | £ |
Other creditors |
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8. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
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Between one and five years |
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In more than five years |
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9. | LOANS AND OTHER DEBTS DUE TO MEMBERS |
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In the event of a winding up, the amounts included in 'Loans and other debts due to members' will rank equally |
with unsecured creditors. |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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11. | ULTIMATE CONTROLLING PARTY |
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In the opinion of the members there is no ultimate controlling party. |