1、Company Registration No.00958970(England and Wales)THE BOSTON CONSULTING GROUP LIMITEDAnnual Report And Financial StatementsFor The Year Ended 31 December 2019THE BOSTON CONSULTING GROUP LIMITEDStrategic Report For the year ended 31 December 2019-1-The directors present the strategic report for the

2、year ended 31 December 2019.Principal activities and review of the businessThe principal activity of the Company continues to be that of the provision of management consultancy services.Turnover from professional services for the financial year was 49,003,808(2018:38,522,837).The net asset position

3、at the end of the year was 147,965,383(2018:129,615,372).The Company has monitored the impacts of the global COVID-19 pandemic since the balance sheet date and has concludedthat it does not materially impact our business and operations.Furthermore,The Companys ultimate parent,BCG Inc.,has provided a

4、 letter of support in the unlikely event that it is required.On 11 October 2019 The Boston Consulting Group Limited(BCG)acquired 100 percent of the issued capital of AllofUs Limited(AoU)with the trade,assets and employees of AoU being transferred to BCG on the same day.Net assets at acquisition were

5、 valued at 428,912.The directors of the Company manage its operations and risks at US group level,rather than at an individual business unit level.For this reason the Companys directors believe that a discussion of the Companys risk and analysis using keyperformance indicators would not be appropria

6、te for an understanding of the development of position of the Companys business.The management consultancy market is competitive and the services required by our clients,who operate in an increasinglycomplex and global economy,are ever changing.Our ability to serve our clients is dependent on our in

7、novative ideas and the quality of our consulting staff.As a result,we continue to dedicate significant resources to the development and enhancement of our strategic thinking,as well as to the training of our staff;both are key investments to the business and an integral part of its continuing succes

8、s.BCGs performance is also subject to certain risks associated with both the local and global economies.The external environment continues to be marked by uncertainty globally with the impact of the coronavirus(COVID-19)pandemic being felt by all industries.Many global business leaders are navigatin

9、g a broad range of interrelated issues that span fromkeeping their employees and customer safe,shoring-up cash and liquidity,reorienting operations and navigating complicated government support programs.While it is impossible to eliminate completely the repercussions associated with economic uncerta

10、inty,we believe the deepand long standing relationships with our clients can help to mitigate any negative impact while we continue to focus on delivering long-term value to our clients.Given the Companys continuing investment in its people,its brand and its unique relationship with many of its clie

11、nts,we are confident that the Company will maintain its current level of performance in the future.Given the straightforward nature of the business,the Companys directors are of the opinion that analysis using keyperformance indicators is not necessary as the disclosures within the financial report

12、give a clear and accurate view of the development,performance and position of the business.Future developmentsThe directors of the Company believe that,despite continued economic uncertainty in developed markets,continuedinvestment in service development,thought leadership and its people is the best

13、 way to advance the organisation and deliver sustained financial performance.THE BOSTON CONSULTING GROUP LIMITEDDirectors Report For the year ended 31 December 2019-3-The directors present their report on the affairs of the Company,together with the audited financial statements and auditors report f

14、or the year ended 31 December 2019.Please refer to the Strategic Report on page 1 for the activities and future developments of the Company.Results and dividendsThe Companys profit before taxation was 29,095,675(2018:32,407,699).A dividend was not paid during the year(2018:21,500,000).Political and

15、charitable donationsCharitable donations in the year amount to 12,137(2018:2,260)There were no contributions for political purposes.Post balance sheet eventsThe United Kingdom has declared emergencies during 2020 due to the COVID-19(coronavirus)global pandemic.The December 2019 financial statements

16、were prepared based on facts and circumstances that existed at 31 December 2019.The Company has assessed the impact of subsequent events through to 26th August 2020,the date the audited financial statements were available for issuance and has concluded that there were no such events that have occurr

17、ed subsequent to the balance sheet date that would require material adjustments to the financial statements or disclosure in the notes to the financial statements.Further,at this time,the Company cannot reasonably estimate the extent to which the disruption may impact the Partnerships financial posi

18、tion,or results of operations in 2020 and beyond.The immediate parent company,BCG UK 2 Limited,will be struck off within 12 months of the balance sheet date.The ownership will be transferred to BCG UK1 Limited.DirectorsThe directors who held office during the year and up to the date of signature of

19、the financial statements were as follows:M HoldenW J Bruce(Appointed 23 May 2019)M RosenthalEmployeesThe Group is committed to employment policies,which follow best practice,based on equal opportunities for all employees,irrespective of sex,gender reassignment,pregnancy/maternity,race,nationality,re

20、ligion or belief,sexual orientation,disability or marital/civil partner status.The Group gives full and fair consideration to applications for employment from disabled persons,having regard to their particular aptitudes and abilities.Appropriate arrangements are made for the continued employment and

21、 training,career development and promotion of disabled persons employed by the Group.If members of staff become disabled the Group continues employment,either in the same or an alternative position,with appropriate retraining being given if necessary.The Group systematically provides employees with

22、information on matters of concern to them,consulting them or their representatives regularly,so that their views can be taken into account when making decisions that are likely to affect their interests.Employee involvement in the Group is encouraged,as achieving a common awareness on the part of al

23、l employees of the financial and economic factors affecting the Group is considered important.The Group encouragesthe involvement of employees by means of regular employee meetings.We strive to ensure that all employees are physically and emotionally fit,in good financial health,comfortable and safe

24、 in the workplace,connected to their communities,and harmonious in their home and work life.To that end,we offer high-quality benefit and family support programs,flexibility,time off to recharge and pursue personal interests,and extensive opportunities for personal and professional development.THE B

25、OSTON CONSULTING GROUP LIMITEDDirectors Report(Continued)For the year ended 31 December 2019-4-Disabled personsThe Companys policy is to recruit disabled workers for those vacancies that they are able to fill.All necessary assistance with initial training courses is given.Once employed,a career plan

26、 is developed so as to ensure suitable opportunities for each disabled person.Arrangements are made,wherever possible,for retraining employees who become disabled,to enable them to perform work identified as appropriate to their aptitudes and abilities.ClientsThe Group partners with clients from the

27、 private,public and non-for-profit sectors to identify their highest value opportunities,address their most critical challenges and transform their enterprises.Our customised approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the clien

28、t organization.This ensures that our clients achieve sustainable competitive advantage,build more capable organizations,and secure lasting results.We seek to be agents of change for our clients,our people and society overall.We are committed to being the partner of choice to transform business and s

29、ociety.Managing our environmental impactWe are committed to minimizing the negative environmental impacts of our business operations.We recognize that our activitiesprimarily business travel and the energy consumed across our officesadversely affect the climate and environment,and we are determined

30、to lessen these impacts.To stimulate firm wide efforts,globally BCG adopted a carbon-neutral goal in 2018.Since then,we have been certified for our compliance with The CarbonNeutral Protocol,which provides a transparent framework for addressing emissions.Although this was an important first step,we

31、strive to continuously reduce our gross emissions.We will learn and adapt to a changingglobal context in order to minimize our emissions and employ the most effective approach available.Driving societal impactWe achieve our greatest societal impact in collaboration with our clients.By maximizing the

32、 impact of these cooperative efforts,we accomplish far more than we ever could alone.We believe that the only way to overcome complex social and environmental challenges is in partnership-the heart of our social impact approach.By enriching and expanding our partnerships and by fostering system-leve

33、l coalitions,we are pursuing our ambition to be the most positively impactful company in the world.We are also committed to serving the local communicates in which we live and work,engaging in both pro bono work and volunteer activities.We offer 12-month Social Impact immersion and secondment progra

34、mmes that enable our consultants to work on projects involving societal impact and sustainability with our clients,or to gain valuable experience outside BCG with our social impact partners.SupplierThe Directors understand the importance of good supplier relationships in the delivery of our client w

35、ork.We have zero-tolerance to slavery and human trafficking and,consistent with BCGs Values and Code of Conduct,we have a specificSupplier Code of Conduct(SCOC)which is included in all our standard contracts.The SCOC:?Requires our suppliers to conduct their business activities and operations with in

36、tegrity and in full compliance with applicable laws and regulations,with specific reference to the MSA;Prohibits suppliers from using all forms of forced or compulsory labour,and from supporting any form of humantrafficking of involuntary labour.Requires the maintenance and promotion of fundamental

37、human rights,where employment decisions are based onfree choice without any coerced or prison labour,use of physical punishment or threats of violence or other forms of physical,sexual,psychological or verbal abuse as a method of discipline or control;andMandates compliance with all applicable wage,

38、benefit and hour laws,health and safety legislation,local and national minimum working age laws and prohibits suppliers from using child labour.THE BOSTON CONSULTING GROUP LIMITEDDirectors Report(Continued)For the year ended 31 December 2019-5-BCG Code of ConductOur Code of Conduct(the Code)sets exp

39、ectations for the behaviour of all members of BCG,it complements the ethos underlying our UN Global Compact(UNGC)commitment,and it serves as a bridge connecting our firms values,our policies and norms,and each individuals actions.It is designed to foster ethical decision making and ensure that our b

40、ehaviour meets the highest standards of professional conduct.The Code covers a wide range of important topics,including providing client services ethically and with transparency,protecting confidential information and ensuring information security,competing fairly,and maintaining a safe environment

41、free of harassment and discrimination.It underscores our commitment to achieving positive and lasting impact on society and our commitment to environmental sustainability.The Code also affirms our adherence to the laws and regulations of the countries where we do business.The Code conveys to the BCG

42、 community the importance of the“see something,say something”principle.Everyone at BCG is encouraged to raise concerns about potential misconduct without fear of adverse repercussions.We offer multiple channels of communication,including our confidential ombudsperson program,which is designed specif

43、ically to support this approach.Further,everyone at BCG is responsible for reporting known or suspected violations of our Code of Conduct and of any law,regulation,or policy.We address all such concerns appropriately in accordance with our internal policies.The internal risk review process assesses

44、BCG local offices adherence to the Code.All instances of discrimination or harassment are subject to reviews that ensure appropriate escalation and resolution.Everyone at BCG must agree to the Code as a condition of their employment and must reaffirm their compliance every year.Web-based training on

45、 the Code is mandatory and is delivered and tracked via our online learning platform.The Code is also akey subject included in the induction program for new joiners and in the recurring training of our various cohorts.Financial risk managementThe Company is a subsidiary of BCG UK2 Limited,which is u

46、ltimately controlled by The Boston Consulting Group Inc.(BCG Inc.).The policies set by the groups board of directors are implemented by the Companys finance department.Thedepartment has a policy and procedures manual that sets out specific guidelines to manage liquidity and interest rate risk,curren

47、cy risk,credit risk and circumstances where it would be appropriate to use financial instruments to manage these.The Company does not use derivative financial instruments to manage interest rate costs and as such,no hedge-accounting is applied.Liquidity and interest rate riskThe Companys arrangement

48、 with various banks ensures it can access the funds needed to meet its liquidity requirements.Cash can be obtained by withdrawing deposits held with the banks or through borrowing from BCG Inc.Interest receivable/payable on balances between the company and banks is calculated at floating rates of in

49、terest.Currency riskThe Companys functional currency is sterling(GBP)and it also presents its financial statements in GBP.Some purchases and sales are denominated in currencies other than GBP.In general,the Company does not purchase derivatives to manage its exposure to currency risk.Credit riskThe

50、Companys policies result in the establishment of contractual terms that minimise the amount of credit exposure to the lowest amount possible.The Company performs ongoing evaluations of the collectability of its receivables resulting from theperformance of the above services and establishes allowance

51、s for potential losses on doubtful accounts.Credit risk also arises from cash and deposits with banks and financial institutions.This is managed by only using banks and financial institutionsthat are independently rated.The amount of exposure to any individual counterparty is subject to a limit,whic

52、h is reviewedregularly by management.THE BOSTON CONSULTING GROUP LIMITEDIndependent Auditors Report TO THE MEMBERS OF THE BOSTON CONSULTING GROUP LIMITED-7-REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTSOpinionIn our opinion,The Boston Consulting Group Limiteds financial statements:-give a true and

53、fair view of the state of the companys affairs as at 31 December 2019 and of its profit for the year then ended;-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice(United Kingdom Accounting Standards,comprising FRS 102“The Financial Reporting Standar

54、d applicable in the UK and Republic of Ireland”,and applicable law);and-have been prepared in accordance with the requirements of the Companies Act 2006.We have audited the financial statements,included within the Annual Report and Financial Statements(the“Annual Report”),which comprise:the balance

55、sheet as at 31 December 2019;the profit and loss account,the statement of changes in equity for the year then ended;and the notes to the financial statements,which include a description of the significant accounting policies.Basis for opinionWe conducted our audit in accordance with International St

56、andards on Auditing(UK)(“ISAs(UK)”)and applicable law.Our responsibilities under ISAs(UK)are further described in the Auditors responsibilities for the audit of the financial statements section of our report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide

57、 a basis for our opinion.IndependenceWe remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,which includes the FRCs Ethical Standard,and we have fulfilled our other ethical responsibilities in accordance

58、 with these requirements.Conclusions relating to going concernWe have nothing to report in respect of the following matters in relation to which ISAs(UK)require us to report to you where:-the directors use of the going concern basis of accounting in the preparation of the financial statements is not

59、 appropriate;or-the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the companys ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the finan

60、cial statements are authorised for issue.However,because not all future events or conditions can be predicted,this statement is not a guarantee as to the companysability to continue as a going concern.Reporting on other informationThe other information comprises all of the information in the Annual

61、Report other than the financial statements and our auditors report thereon.The directors are responsible for the other information.Our opinion on the financial statements does not cover the other information and,accordingly,we do not express an audit opinion or,except to the extent otherwise explici

62、tly stated in this report,any form of assurance thereon.In connection with our audit of the financial statements,our responsibility is to read the other information and,in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtain

63、ed in the audit,or otherwise appears to be materially misstated.If we identify an apparent material inconsistency or material misstatement,we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other in

64、formation.If,based on the work we have performed,we conclude that there is a material misstatement of this other information,we are required to report that fact.We have nothing to report based on these responsibilities.With respect to the Strategic Report and Directors Report,we also considered whet

65、her the disclosures required by the UK Companies Act 2006 have been included.THE BOSTON CONSULTING GROUP LIMITEDIndependent Auditors Report(Continued)TO THE MEMBERS OF THE BOSTON CONSULTING GROUP LIMITED-8-Based on the responsibilities described above and our work undertaken in the course of the aud

66、it,ISAs(UK)require us also to report certain opinions and matters as described below.Strategic Report and Directors ReportIn our opinion,based on the work undertaken in the course of the audit,the information given in the Strategic Report and Directors Report for the year ended 31 December 2019 is c

67、onsistent with the financial statements and has been prepared in accordance with applicable legal requirements.In light of the knowledge and understanding of the company and its environment obtained in the course of the audit,we did not identify any material misstatements in the Strategic Report and

68、 Directors Report.Responsibilities for the financial statements and the auditResponsibilities of the directors for the financial statementsAs explained more fully in the Statement of Directors responsibilities in respect of the financial statements set out on page 6,the directors are responsible for

69、 the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view.The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are

70、free from material misstatement,whether due to fraud or error.In preparing the financial statements,the directors are responsible for assessing the companys ability to continue as a going concern,disclosing,as applicable,matters related to going concern and using the going concern basis of accountin

71、g unless the directors either intend to liquidate the company or to cease operations,or have no realistic alternative but to do so.Auditors responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole ar

72、e free from material misstatement,whether due to fraud or error,and to issue an auditors report that includes our opinion.Reasonable assuranceis a high level of assurance,but is not a guarantee that an audit conducted in accordance with ISAs(UK)will always detect a material misstatement when it exis

73、ts.Misstatements can arise from fraud or error and are considered material if,individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.A further description of our responsibilities for the audit o

74、f the financial statements is located on the FRCs website at:www.frc.org.uk/auditorsresponsibilities.This description forms part of our auditors report.Use of this reportThis report,including the opinions,has been prepared for and only for the companys members as a body in accordance with Chapter 3

75、of Part 16 of the Companies Act 2006 and for no other purpose.We do not,in giving these opinions,accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.THE B

76、OSTON CONSULTING GROUP LIMITEDIndependent Auditors Report(Continued)TO THE MEMBERS OF THE BOSTON CONSULTING GROUP LIMITED-9-OTHER REQUIRED REPORTINGCompanies Act 2006 exception reportingUnder the Companies Act 2006 we are required to report to you if,in our opinion:-we have not received all the info

77、rmation and explanations we require for our audit;or-adequate accounting records have not been kept by the company,or returns adequate for our audit have not beenreceived from branches not visited by us;or-certain disclosures of directors remuneration specified by law are not made;or-the financial s

78、tatements are not in agreement with the accounting records and returns.We have no exceptions to report arising from this responsibility.Charles Mirrington(Senior Statutory Auditor)for and on behalf of PricewaterhouseCoopers LLPChartered Accountants andStatutory AuditorsLondonTHE BOSTON CONSULTING GR

79、OUP LIMITEDProfit And Loss AccountFor the year ended 31 December 2019-10-20192018NoteTurnover549,003,80838,522,837Staff costs6(36,928,999)(25,455,990)Depreciation and other amounts written off tangible and intangible fixed assets12(1,824,335)(853,856)Other operating expenses(7,461,225)(4,899,569)Ope

80、rating profit72,789,2497,313,422Income from shares in group undertakings26,194,82925,069,021Other interest receivable and similar income9111,59733,775Interest payable and similar expenses10-(8,519)Profit before taxation29,095,67532,407,699Tax on profit11(10,745,664)(7,981,337)Profit for the financia

81、l year18,350,01124,426,362All amounts relate to continuing operations.The Company has not recognised gains and losses other than those included in the results above,and therefore no separate Statement of Comprehensive Income has been presented.THE BOSTON CONSULTING GROUP LIMITEDBalance Sheet As at 3

82、1 December 2019-11-20192018NoteFixed assetsIntangible assets122,378,865-Tangible assets131,655,3242,517,166Investments14143,041,592128,953,994147,075,781131,471,160Current assetsDebtors1692,713,50576,103,673Cash at bank and in hand805,939572,25893,519,44476,675,931Creditors:amounts falling due withi

83、n one year17(38,816,940)(16,514,442)Net current assets54,702,50460,161,489Total assets less current liabilities201,778,285191,632,649Creditors:amounts falling due after more than one year18(53,812,902)(62,017,277)Net assets147,965,383129,615,372Capital and reservesCalled up share capital204,0004,000

84、Share premium account7,300,0007,300,000Retained earnings140,661,383122,311,372Total equity147,965,383129,615,372The financial statements on pages 10 to 31 were approved by the board of directors on 26 August 2020 and are signed on its behalf by:.M HoldenDirectorThe notes on pages 13 to 31 form part

85、of these financial statements.Company Registration No.00958970THE BOSTON CONSULTING GROUP LIMITEDStatement Of Changes In Equity For the year ended 31 December 2019-12-Called up share capitalShare premium accountRetained EarningsTotal EquityBalance as at 1 January 20184,0007,300,000119,385,010126,689

86、,010Year ended 31 December 2018Profit and total comprehensive income for the financial year-24,426,36224,426,362Dividends-(21,500,000)(21,500,000)Balance as at 31 December 20184,0007,300,000122,311,372129,615,372Year ended 31 December 2019Profit and total comprehensive income for the financial year-

87、18,350,01118,350,011Balance as at 31 December 20194,0007,300,000140,661,383147,965,383THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements For the year ended 31 December 2019-13-1Company informationThe Boston Consulting Group Limited is a private company limited by shares incorporate

88、d in United Kingdom(England and Wales).The registered office is 20 Manchester Square,London,W1U 3PZ.The principal activities of the Company continues to be that of the provision of management consultancy services.2Statement of complianceThe financial statements of The Boston Consulting Group Limited

89、 have been prepared have been prepared in compliance with United Kingdom Accounting Standards,including Financial Reporting Standard 102,The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland(FRS 102)and the Companies Act 2006.The Company is exempt under sectio

90、n 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiaries are included by full consolidation in the consolidated financial statements of another group company,BCG UK1 Limited,a company registered in the United Kingdom(England and Wal

91、es),which are available to the public at panieshouse.gov.uk.3Accounting policiesThe principal accounting policies applied in the preparation of these financial statements are set out below.These policies have been consistently applied to all the years presented,unless otherwise stated.3.1Basis of pr

92、eparationThese financial statements are prepared on the going concern basis,under the historic cost convention modified by the revaluation of financial assets and financial liabilities held at fair value through profit and loss and in accordance with the Companies Act 2006 and applicable accounting

93、standards in the United Kingdom.The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates.It also requires management to exercise its judgement in the process of applying the Companys accounting policies.The areas involving a higher

94、degree of judgement or complexity,or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4 Critical accounting judgements and key source ofestimation uncertainty of the accounting policies section.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Fin

95、ancial Statements For the year ended 31 December 20193Accounting policies(Continued)-14-3.2Going concernThe Company meets its day-to-day working capital requirements through its bank facilities.Considerable uncertainty in the external environment has continued this year in both the UK and globally,i

96、ncluding the global COVID-19 pandemic and ongoing Brexit negotiations.This has created uncertainty over(a)the level of demand for the Companys management consultancy services;and(b)the availability of bank finance for the foreseeable future.The Companys forecasts and projections,taking account of re

97、asonably possible changes in trading performance,show that the Company should be able to operate within the level of its current facilities.After making enquiries,the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseea

98、ble future.The Company therefore continues to adopt the going concern basis in preparing its financial statements.The Company has monitored the impacts of the global COVID-19 pandemic since the balance sheet date and has concluded that it does not materially impact our business and operations.Furthe

99、rmore,The Groups parent,BCG Inc.,has provided a letter of support in the unlikely event that it is required.3.3Related party transactionsThe Company is a wholly owned subsidiary of BCG UK1 Limited.The Company has taken advantage of theexemption stated below and does not disclose transactions with an

100、y entities that are part of the same group.The financial statements for BCG UK1 Limited,its intermediary parent,which are prepared on a consolidated basis,are publicly available at panieshouse.gov.uk.Exemptions for qualifying entities under FRS 102FRS 102 allows a qualifying entity certain disclosur

101、e exemptions,if certain conditions,have been complied with,including notification of and no objection to,the use of exemptions by the Companys shareholders.A qualifying entity is defined as a member of a group that prepares publicly available financial statements,which give a true and fair view,in w

102、hich that the member is consolidated.The Boston Consulting Group Limited is a qualifying entity as its results are consolidated in the BCG UK1 Limited financial statements,which are publicly available.The Company has taken advantage of the following exemptions:i)from the requirement to prepare a sta

103、tement of cash flows as required by paragraph 3.17(d)of FRS 102;ii)from the requirement to present certain financial instrument disclosures,as required by sections 11 and 12 of FRS 102;andiii)from the requirement to disclose the key management personnel compensation in total as required by paragraph

104、 33.7 of FRS 102.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 20193Accounting policies(Continued)-15-3.4Foreign currency(i)Functional and presentation currencyThe Companys functional and presentational currency is sterling(GBP).(ii)Tra

105、nsactions and balancesUK trading activities denominated in foreign currencies are recorded in sterling at the rate ruling at the date of eachtransaction.At each period end foreign currency monetary items are translated using the closing rate.Non-monetary itemsmeasured at historical cost are translat

106、ed using the exchange rate at the date of transaction and non-monetary itemsmeasured at fair value are measured using the exchange rate when fair value was determined.Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-endexchange rates

107、of monetary assets and liabilities denominated in foreign currencies are recognised in the statement ofcomprehensive income.3.5TurnoverTurnover is stated net of sales tax and is recognised to the extent that it is probable that economic benefits will flow to The Boston Consulting Group Limited and c

108、an be reliably measured.Turnover represents the fair value of professional services provided on the basis of time spent at the agreed fee rates.Under certain services or project management contracts,The Boston Consulting Group Limited manages client expenditure and is obliged to purchasegoods and se

109、rvices from third-party contractors and recharge them on to the client at cost.The amounts charged bycontractors and recharged to clients are excluded from turnover and direct costs.Turnover and costs are recognised on this basis where the outcome of the contract can be reliably measured and isreaso

110、nably certain.Full provision is made for all known or anticipated losses on each contract at the point where suchlosses are identified.Contract costs include direct staff costs and an appropriate allocation of overhead anddisbursements.Amounts due from clients are stated at turnover recognised to da

111、te less amounts billed on account.Amounts billed toclients are recorded in trade debtors less any provision for impairment.To the extent that fees paid on account exceedthe value of work performed,they are included in deferred revenue.3.6Employee benefitsThe costs of short-term employee benefits are

112、 recognised as a liability and an expense,unless those costs are requiredto be recognised as part of the cost of stock or fixed assets.The cost of any unused holiday entitlement is recognised in the period in which the employees services are received.Termination benefits are recognised immediately a

113、s an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.3.7Retirement benefitsPayments to defined contribution retirement benefit schemes are charged as an expense as they fall due.THE BOSTON CONSULTING GROUP LIMITEDNotes

114、To The Financial Statements(Continued)For the year ended 31 December 20193Accounting policies(Continued)-16-3.8Share-based paymentsMembers in The Boston Consulting Group UK LLP are granted interest rights in The Boston Consulting Group UK LLP.The value of the rights are tracked with reference to the

115、 value of BCG Inc.shares.The group financial statements for the plan as a cash-settled share based payment under FRS 20 as the obligation to settle this award resides within the Company.The fair value of the services received from participants in exchange for the capital interest awards is recognise

116、d as an investment in The Boston Consulting Group UK LLP.The fair value is measured by the use of the Black-Scholes pricing model.3.9TaxationTaxation expense for the period comprises current and deferred tax recognised in the reporting period.Tax isrecognised in the profit and loss account,except to

117、 the extent that it relates to items recognised in the comprehensiveincome or directly in equity.In this case,tax is also recognised in other comprehensive income directly in equityrespectively.Current or deferred taxation assets and liabilities are not discounted.i)Current taxCurrent tax is the amo

118、unt of income tax payable in respect of the taxable profit for the year or prior years.Tax iscalculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.Management periodically evaluates positions taken in tax returns with respect to situations in

119、which applicable taxregulation is subject to interpretation.It establishes provisions where appropriate on the basis of amounts expected tobe paid to the tax authorities.ii)Deferred taxDeferred tax arises from timing differences that are differences between taxable profits and total comprehensiveinc

120、ome as stated in the financial statements.These timing differences arise from the inclusion of income and expensesin tax assessments in periods different from those in which they are recognised in financial statements.Deferred tax is measured at the average tax rate that is expected to apply in the

121、periods in which timing differences are expected to reverse,based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date.A net deferred tax asset is recognised as recoverable and therefore recognised only when,on the basis of all availableevidence,it can be r

122、egarded as more likely than not that there will be suitable taxable profits against which to recovercarried forward tax losses and from which the future reversal of underlying timing differences can be deducted.3.10 Business combinations and goodwillIn the company financial statements,the cost of a

123、business combination is the fair value at the acquisition date of the assets given,equity instruments issued and liabilities incurred or assumed,plus costs directly attributable to the business combination.The excess of the cost of a business combination over the fair value of the identifiable asset

124、s,liabilities and contingent liabilities acquired is recognised as goodwill.The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably,and is adjusted for changes in contingent consideration after the acquisition date.Provision

125、al fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.Investments in subsidiaries,joint ventures and associates are accounted for at cost less impairment.Goodwill relates t

126、o:Goodwill in AllofUs Limited-shown at cost and will be amortised over 5 years which is considered the useful life of the asset.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 20193Accounting policies(Continued)-17-3.11Tangible assetsTang

127、ible assets are stated at historic purchase cost less accumulated depreciation.Cost includes the original price of the asset and the costs attributable to bringing the asset to the working condition of its intended use.Depreciation is provided at rates calculated to write off the cost(less estimated

128、 residual value of each asset)or valuation on a straight line basis over the estimated useful life as follows:Office equipment2-5 years(20%-50%per annum)Subsequent costs,including major inspections,are included in the assets carrying amount or recognised as a separateasset as appropriate,only when i

129、t is probable that economic benefits associated with the items will flow to theCompany and the cost can be measured reliably.Tangible assets are derecognised on disposal or when no future economic benefits are expected.On disposal,thedifference between the net disposal proceeds and the carrying amou

130、nt is recognised in the statement ofcomprehensive income.3.12 Impairment of non-financial assetsAt each quarter end,non-financial assets not carried at fair value are assessed to determine whether there is anindication that the asset may be impaired.If there is such an indication,the recoverable amo

131、unt of the asset iscompared to the carrying amount of the asset.The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use.Value in use isdefined as the present value of the future pre-tax and interest cash flows obtainable as a result of the assets conti

132、nueduse.The pre-tax and interest cash flows are discounted using a pre-tax discount rate that represents the current marketrisk-free rate and the risks inherent in the asset.If the recoverable amount of the asset is estimated to be lower than the carrying amount,the carrying amount isreduced to its

133、recoverable amount.An impairment loss is recognised in the statement of comprehensive income,unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of anypreviously recognised revaluation.Thereafter,any excess is recognised in the statement of co

134、mprehensive income.If an impairment loss is subsequently reversed,the carrying amount of the asset is increased to the revised estimate ofits recoverable amount,but only to the extent that the revised carrying amount does not exceed the carrying amountthat would have been determined(net of depreciat

135、ion)had no impairment loss been recognised in prior periods.Areversal of an impairment loss is recognised in the statement of comprehensive income.3.13 InvestmentsInterests in subsidiaries,associates and jointly controlled entities are initially measured at cost and subsequently measured at cost les

136、s any accumulated impairment losses.The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.A subsidiary is an entity controlled by the Company.Control is the power to govern the finan

137、cial and operating policies of the entity so as to obtain benefits from its activities.3.14 Work in progressUnbilled fees for services performed are recorded at estimated billable amount less amount provided for as unrecoverable.Unbilled expenses recoverable from clients are recorded on a cost incur

138、red basis.3.15 Cash and cash equivalentsCash at bank and in hand 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 i

139、n current liabilities.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 20193Accounting policies(Continued)-18-3.16 Financial instrumentsThe Company has elected to apply the provisions of Section 11 Basic Financial Instruments and Section 1

140、2 OtherFinancial Instruments Issues of FRS 102 to all of its financial instruments.Financial instruments are recognised in the Companys balance sheet when the Company becomes party to thecontractual provisions of the instrument.Financial assets and liabilities are offset,with the net amounts present

141、ed in the financial statements,when there is alegally 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.Basic financial assetsBasic financial assets,which include debtors and cash at

142、bank balances are initially measured at transaction priceincluding transaction costs.The assets 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 ofthe futur

143、e receipts discounted at a market rate of interest.Financial assets classified as receivable within one year are not amortised.Other financial assetsOther financial assets,including investments in equity instruments which are not subsidiaries,associates or jointventures,are initially measured at fai

144、r value,which is normally the transaction price.Such assets are subsequentlycarried at fair value and the changes in fair value are recognised in profit or loss,except that investments in equityinstruments that are not publicly traded and whose fair values cannot be measured reliably are measured at

145、 cost lessimpairment.Impairment of financial assetsFinancial assets,other than those held at fair value through profit and loss,are assessed for indicators of impairment at each reporting end date.Financial assets are impaired where there is objective evidence that,as a result of one or more events

146、that occurredafter the initial recognition of the financial asset,the estimated future cash flows have been affected.If an asset isimpaired,the impairment loss is the difference between the carrying amount and the present value of the estimatedcash flows discounted at the assets original effective i

147、nterest rate.The impairment loss is recognised in profit or loss.If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised,theimpairment is reversed.The reversal is such that the current carrying amount does not exceed what the carryingamount w

148、ould have been,had the impairment not previously been recognised.The impairment reversal is recognisedin profit or loss.Derecognition of financial assetsFinancial assets are derecognised only when the contractual rights to the cash flows from the asset expire or aresettled,or when the Company transf

149、ers the financial asset and substantially all the risks and rewards of ownership toanother entity,or if some significant risks and rewards of ownership are retained but control of the asset hastransferred to another party that is able to sell the asset in its entirety to an unrelated third party wit

150、hout imposing additional restrictions.Classification of financial liabilitiesFinancial 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 th

151、e Company after deducting all of its liabilities.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 20193Accounting policies(Continued)-19-Basic financial liabilities,including creditors,bank loans,loans from fellow group companies and prefe

152、rence 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 marketrate of interest.Financial liabilities classified

153、as payable within one year are not amortised.Debt instruments are subsequently carried at amortised cost,using the effective interest rate method.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

154、 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.Other financial liabilitiesD

155、erivatives,including interest rate swaps and forward foreign exchange contracts,are not basic financial instruments.Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequentlyre-measured at their fair value.Changes in the fair value of de

156、rivatives are recognised in profit or loss in finance costsor finance income as appropriate,unless hedge accounting is applied and the hedge is a cash flow hedge.Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair valuethrough profit or loss.D

157、ebt instruments may be designated as being measured at fair value through profit or loss toeliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on afair value basis in accordance with a documented risk management or investment strategy.Derecog

158、nition of financial liabilitiesFinancial liabilities are derecognised when the Companys contractual obligations expire or are discharged orcancelled.3.17 Equity instrumentsEquity instruments issued by the Company are recorded at the proceeds received,net of transaction costs.Dividends payable on equ

159、ity instruments are recognised as liabilities once they are no longer at the discretion of the company.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019-20-4Critical accounting judgement and key source of estimation uncertaintyThe prep

160、aration of the financial statements requires management to make judgement,estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities,revenue and expenses.Actual results may differ from these estimates.Key accounting estimates a

161、nd assumptionsEstimates and underlying assumptions are continually evaluated and are based on historical experience and otherfactors,including expectations of future events that are reasonable under the circumstances.Revisions to accounting estimates are recognized in the period in which the estimat

162、es are revised and in any future periods affected.The resulting accounting estimates will,by definition,seldom equal the related actual results.The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the nex

163、t financial year are addressed below.Investments in subsidiariesInvestments are reviewed annually by management at each year end for any signs of impairment.See note 14 for the net carrying amount of investments in subsidiaries and any associated impairment.Useful economic lives of property,plant an

164、d equipmentTangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate.The useful economic lives and residual values of property,plant and equipment are re-assessed annually and are amended when necessary to reflect current estimates,based on t

165、echnological advancement,economic utilisation and physical condition of the assets.See note 13 for the carrying amount of the property,plant and equipment and note 3.10 for theuseful economic lives for each class of assets.Impairment of trade and other debtorsAssets are tested for impairment in line

166、 with the policy described in the financial assets accounting policy.Management makes an estimate of the recoverable values of trade and other debtors based on factors including thecredit rating of the receivable,the ageing profile of receivables and historical experience.See note 16 for the netcarr

167、ying amount of the debtors and associated impairment provision.Share based paymentThe fair value of the capital interest programme is estimated using the Black-Scholes pricing model.The fair value is recognised as an investment in The Boston Consulting Group UK LLP,and is revalued at the balance she

168、et date.Work in progress provisionsProvisions are made for work in progress.The work in progress balances are reviewed by management on a monthlybasis to assess recoverability.Provisions are made as deemed appropriate.See note 15 for the net carrying amount ofthe work in progress and associated impa

169、irment provision,included in unbilled fees and expenses.5TurnoverContributions to turnover and profit for the financial year by geographical market have been omitted,as the directorsbelieve disclosure would be detrimental to the business.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Stat

170、ements(Continued)For the year ended 31 December 2019-21-6Staff costsEmployeesParticulars of staff costs are shown below:20192018Wages and salaries22,342,65415,611,817Social security costs2,854,1551,935,512Other pension costs82,074,1641,315,573Outsourced consultancy9,658,0266,593,08836,928,99925,455,

171、990Outsourced consultancy costs represent the secondment of employees from the other BCG Inc.group companies.The monthly average number of persons employed by The Boston Consulting Group Limited during the year was as follows:20192018NumberNumberConsultancy12360Administrative473817098DirectorsDirect

172、ors emoluments for the Group have been disclosed in BCG UK1 Limiteds consolidated financial statements.The Directors receive no remuneration in respect of their services to the Company.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019-

173、22-7Operating profit20192018Operating profit for the year is stated after charging:Foreign exchange losses/(gains)215,078(11,577)Fees payable to the Companys auditors for the audit of the Companys financial statements97,56440,000Depreciation of tangible assets1,712,534853,856Profit on disposal of ta

174、ngible assets-(1,275)Amortisation of goodwill111,801-Donations12,1372,260The fees payable to the Companys auditors and their associates for other(non-audit)services have not been disclosed.The consolidated financial statements of the Companys parent company disclose other(non-audit)services on a con

175、solidated basis.8Pension and other post-retirement benefit commitmentsThe cost for the financial year is 2,074,164(2018:1,315,573).Outstanding contributions as at 31st December 2019 were 648,282(2018:778,122).9Other Interest receivable and similar income20192018Interest incomeInterest on bank deposi

176、ts111,59733,77510Interest payable and similar expenses20192018Other interest payable-8,519THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019-23-11Taxation20192018Current taxUK corporation tax on profits for the current year10,329,5746,8

177、02,899Adjustments in respect of prior periods416,0901,178,438Total current tax10,745,6647,981,337The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:20192018Profit before taxation29,095,67532,407,699

178、Expected tax charge based on the standard rate of corporation tax in the UK of 19.00%(2018:19.00%)5,528,1786,157,463Tax effect of expenses that are not deductible in determining taxable profit3,216,680364,524Capital allowances and other timing differences1,584,716280,912Adjustments in respect of pri

179、or years416,0901,178,438Tax expense for the year10,745,6647,981,337Tax rate changesChanges to the UK Corporation Tax rates were substantively enacted as part of the Finance Bill 2016(on 6 September 2016).These include reductions to the main rate to 17%from 1 April 2020.In November 2019,the Prime Min

180、ister announced that he intended to cancel the future reduction in corporation tax rate from 19%to 17%.Thischange was substantively enacted on 17th March 2020.Resulting in the tax rate for the current year being held at19%.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continue

181、d)For the year ended 31 December 2019-24-12Intangible assetsGoodwillCostAt 1 January 2019-Additions-separately acquired2,490,666At 31 December 20192,490,666Accumulated amortisation and impairmentAt 1 January 2019-Amortisation charged for the year111,801At 31 December 2019111,801Carrying amountAt 31

182、December 20192,378,865At 31 December 2018-13Tangible assetsOffice EquipmentCostAt 1 January 20193,243,759Additions855,551Disposals(68,221)Acquisitions5,523At 31 December 20194,036,612Accumulated depreciation and impairmentAt 1 January 2019726,593Depreciation charged in the year1,712,534Disposals(57,

183、839)At 31 December 20192,381,288Carrying amountAt 31 December 20191,655,324At 31 December 20182,517,166AllofUs acquisitions transfer noteThe acquisitions of assets presented in the current year directly relate to the transfer of office equipment in relation to the purchase of AllofUs Limited on 11th

184、 October 2019.The acquisitions of the office equipment are recorded at net book value(NBV)with the subsequent depreciation recorded during the year.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019-25-14Investments20192018Investments i

185、n subsidiaries143,041,592128,953,994Note 15 shows a full list of subsidiaries.Movements in fixed asset investmentsShares in group undertakingsCost or valuationAt 1 January 2019130,294,166Additions14,087,598At 31 December 2019144,381,764ImpairmentAt 1 January 2019&31 December 20191,340,172Carrying am

186、ount and Net book valueAt 31 December 2019143,041,592At 31 December 2018128,953,994THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019-26-15SubsidiariesDetails of the Companys subsidiaries at 31 December 2019 are as follows:Name of under

187、takingAddress of registered officeNature of businessClass of shareholdingShares held%Expand Research LLP20 Manchester SquareConsultingOrdinary100.00LondonW1U 3ANUKThe Boston Consulting Group UK LLP20 Manchester SquareConsultingOrdinary99.90LondonW1U 3PZUKThe Boston Consulting Group SLCalle AlcalCons

188、ultingOrdinary99.9095-2da Planta28009 MadridSpainThe Boston Consulting Group(Moscow)Limited20 Manchester SquareConsultingOrdinary100.00LondonW1U 3PZUKThe Boston Consulting Group OOOGasheka Ul.ConsultingOrdinary100.006,Ducat Place IIIMoscow 125047RussiaExpand Consulting Inc.10 Hudson YardsResearch an

189、d business Ordinary100.00New YorkdevelopmentNY,10001USAExpand PTE LTDRepublic PlazaResearch and business Ordinary100.00Level 58development9 Raffles PlazaSingapore 048619The Boston Consulting Group BVBoulevard deConsultingOrdinary99.92IImperatrice,131000 BrusselsBelgiumAllofUs Limited20 Manchester Sq

190、uareAdvertising AgencyOrdinary100.00LondonW1U 3PZUKBCG Luxembourg Europe Holding S.a.r.l15 Boulevard F.W.RaiffeisenHolding companyOrdinary100.00L-2411 LuxembourgGrand Duchy of LuxembourgTHE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019

191、15Subsidiaries(Continued)-27-BCG UK1 Limited holds 100%of the equity interest of The Boston Consulting Group UK LLP indirectly through The Boston Consulting Group Limited.The directors of the Company believe that the carrying value of the investments is supported by their underlying net assets.THE B

192、OSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019-28-16Debtors20192018Amounts falling due within one year:Trade debtors5,052,1475,097,458Unbilled fees and expenses4,138,384943,785Amounts owed by group undertakings83,459,32869,814,648Other d

193、ebtors12,7011,552Corporation tax recoverable-219,476Prepayments and accrued income50,94526,75492,713,50576,103,673There are no provisions for impairment of trade debtors(2018:nil)Amounts owed by group undertakings are unsecured,interest free,have no fixed date of repayment and are repayable on deman

194、d.17Creditors:amounts falling due within one year20192018Trade creditors526,010197,097Amount owed to group undertakings29,276,3305,523,293Billings in advance-2,065,321Corporation tax payable858,675-Taxation and social security2,763,4733,523,104Other creditors141,0753,473Accruals5,251,3775,202,15438,

195、816,94016,514,442Amounts owed to group undertakings are unsecured,interest free,have no fixed repayment date and are repayable on demand.18Creditors:amounts falling due after more than one year20192018Amounts owed to group undertakings-18,619,735Other creditors2253,812,90243,397,54253,812,90262,017,

196、277Amounts owed to group undertakings are unsecured,interest free,have no fixed repayment date and are repayable ondemand.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019-29-19Ultimate parent undertaking and controlling partyThe immed

197、iate parent group company is BCG UK2 Limited.The ultimate parent and controlling company is BCG Inc.,a company incorporated in the Commonwealth of Massachusetts,USA.The largest group of which the Company is a member and for which Group financial statements are prepared is BCG Inc.The smallest group

198、of which the Company is a member and for which Group financial statements are prepared is BCG UK1 Limited.Financial statements can be obtained from 20 Manchester Square,London,W1U 3PZ.20Called up share capital20192018Ordinary share capitalAuthorised5,000(2018:5,000)Ordinary shares of 1 each5,0005,00

199、0Issued and fully paid4,000(2018:4,000)Ordinary shares of 1 each4,0004,00021Related party transactionsThe Company is a wholly owned subsidiary of BCG UK1 Limited.The Company has taken advantage of theexemption stated below and does not disclose transactions with any entities that are part of the sam

200、e group.The financial statements for BCG UK1 Limited,its intermediary parent,which are prepared on a consolidated basis,are publicly available at panieshouse.gov.uk.Exemptions for qualifying entities under FRS102FRS 102 allows a qualifying entity certain disclosure exemptions,if certain conditions,h

201、ave been complied with,including notification of and no objection to,the use of exemptions by the Company.A qualifying entity is defined as a member of a group that prepares publicly available financial statements,which give a true and fair view,in which that member is consolidated.The ultimate hold

202、ing company is BCG Inc.,incorporated in the Commonwealth of Massachusetts,USA.BCG Inc.also prepares consolidated financial statements,but these are not publicly available.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019-30-22Share bas

203、ed paymentsCapital interestDuring the year ended 31 December 2019,members in The Boston Consulting Group UK LLP were granted capital interests in The Boston Consulting Group UK LLP.The value of which are tracked with reference to the value of The Boston Consulting Group Inc.capital interests.The Bla

204、ck-Scholes option pricing model has been used to calculate the fair value of the capital interests.The following table summarises the fair value and key assumptions used:Year ended Year ended31st Dec-19 31st Dec-18Number of capital interests awarded during the year14,4818,164Weighted average fair va

205、lue on award9.309.36Weighted average exercise price503.47408.69Weighted average purchase price438.09354.22Expected dividend yield0%0%Risk-free rate1.88%2.74%Expected volatility9.27%10.86%Expected life7 years7 yearsVolatility has been determined by reference to historical volatility which is expected

206、 to reflect the BCG Inc.s share price appreciation in the future.An expected life of 7 years(2018:7 years)has been assumed as the typical period before a participant will choose to sell their interest.The weighted average purchase price is equal to the participants actual purchase price together wit

207、h the interest expected to be paid on the loan over the expected life.As the purchase price is in US dollars the risk free interest rate is based on the US risk-free rate over the expected life.36,963 capital interests were exercised during the period and 165,030 were outstanding as at 31 December 2

208、019.The total liability at year end is 52,000,767(Note 18-represented within other creditors amount).This is accounted for as a cash-settled share based payment.THE BOSTON CONSULTING GROUP LIMITEDNotes To The Financial Statements(Continued)For the year ended 31 December 2019-31-23Acquisition of a bu

209、sinessOn 11 October 2019 The Boston Consulting Group Limited(BCG)acquired 100 percent of the issued capital of AllofUs Limited.The trade,assets and employees were transferred to BCG on the same day and therefore there are no separately generated revenues or profits to be disclosed.Book ValueAdjustme

210、ntsFair ValueTangible assets-7,1827,182Trade and other receivables872,65823,480896,138Trade and other payables(481,076)-(481,076)Cash and cash equivalents37,330-37,330Total identifiable net assets428,91230,662459,574Goodwill2,490,666Total consideration2,950,240Satisfied by:Cash2,184,591Deferred cons

211、ideration735,974Directly attributable costs29,6752,950,24024Events after the reporting dateNon-adjusting post balance sheet eventThe United Kingdom has declared emergencies during the first half of 2020 due to the COVID-19(coronavirus)global pandemic.The 2019 financial statements were prepared based

212、 on managements best estimates about facts andcircumstances that existed at 31 December 2019.If economic conditions worsen as a result of the global pandemic,the company may be adversely impacted,and actual results could differ from those estimates.The company has assessed the impact of subsequent e

213、vents through to 26th August 2020,the date the audited financial statements were available for issuance,and has concluded that there were no such events that have occurred subsequent to the balancesheet date that would require material adjustments to the financial statements or disclosure in the not

214、es to the financial statements.Further,at this time,the company cannot reasonably estimate the extent to which the disruption may impact the companys financial position,or results of operations in 2020.The immediate parent company,BCG UK 2 Limited,will be struck off within 12 months of the balance sheet date.The ownership will be transferred to BCG UK1 Limited.