This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

ICAEW comments on the BIS consultation on deregulatory changes for LLPs and qualifying partnerships as a result of the UK implementation of the EU Accounting Directive

  • ICAEW comment letter Image

08 Jan 2016

The Institute of Chartered Accountants in England and Wales (ICAEW) has published its comment letter on the Department for Business, Innovation and Skills (BIS) consultation on deregulatory changes for LLPs and qualifying partnerships as a result of the UK implementation of the EU Accounting Directive.

The European Union published the EU Accounting Directive 2013/34/EU (‘the Directive’) on 26 June 2013. The Directive aimed to simplify the accounting requirements for small companies and improves the clarity and comparability of companies' financial statements within the Union.

Following a consultation by BIS in August 2014 and government response in January 2015regulations were made (the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015) which implemented the EU Accounting Directive for limited companies.  Changes were also made by the Financial Reporting Council (FRC) to UK accounting standards in July 2015 to implement those changes.  At that time, the Government indicated that it would be consulting separately for LLPs and qualifying partnerships.

The LLPs and qualifying partnerships consultation proposes to introduce similar changes to the regulatory framework for LLPs.

Overall the ICAEW supports the proposals.  It comments that “in our view, having different rules for LLPs and companies represents an additional burden on business and is most unwelcome”.

Within its comment letter the ICAEW also expresses continued concerns over the long term implications of the micro-entity regime and the revised regime for small companies.  It is particularly concerned with the impact of the reduced level of information included in micro-entity accounts (or abridged accounts under the revised small companies’ regime) on the ability of such businesses to raise finance.  It also expresses concerns over the limited disclosure requirements under the revised small companies’ regime in the context of the responsibility of directors to ensure that accounts show a true and fair view.  The ICAEW “continue to urge BIS to monitor the effects of the revised regime over time, particularly in terms of the quality of financial statements produced by small and micro-entities.

The full comment letter is available on the ICAEW website. 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.