In August 2016, the Consultative Committee of Accountancy Bodies (CCAB) issued a Draft Statement of Recommended Practice – Accounting by Limited Liability Partnerships, which is open for comment until 1 November 2016. The proposals make amendments to the latest edition of the SORP which was last issued in July 2014.
The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 were issued earlier in 2016. These Regulations amend legislation relating to the accounting and audit regulatory framework for limited liability partnerships (LLPs) and also introduce an exemption from certain financial reporting requirements for very small (micro) LLPs and very small (micro) partnerships, including limited partnerships, which are ‘qualifying partnerships’ under the Partnerships (Accounts) Regulations (SI 2008/569).
The latest review considers:
- the changes made to FRS 102 in July 2014 which relaxed the conditions for determining whether a financial instrument is ‘basic’ (hence accounted for under Section 11 Basic Financial Instruments) or ‘other’ (hence accounted for under Section 12 Other Financial Instruments Issues);
- the amendments made to FRS 102 in February 2015 which clarifies aspects in respect of defined benefit pension plan accounting;
- amendments to UK accounting standards that were published in July 2015 including:
- the withdrawal of the FRSSE;
- the inclusion of Section 1A Small Entities in FRS 102; and
- the publication of FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime; and
- amendments made to FRS 102 in March 2016 which updated the fair value hierarchy disclosures.
The revised SORP is scheduled to be effective for periods commencing on or after 1 January 2016, with early-adoption permissible for accounting periods beginning on or after 1 January 2015. Where early-adoption is chosen, the LLP must apply the provisions in The Limited Liability Partnerships (Accounts and Audit) Regulations 2016 (SI 2016/575) from the same date.
For more information please contact Lesley Malkin.