The Financial Reporting Council (FRC) has approved the CCAB as the recognised SORP-making body for issuing a recognised SORP for LLPs incorporated in Great Britain under the Limited Liability Partnerships Act 2000.  The members of the CCAB are; The Institute of Chartered Accountants in England and Wales (ICAEW), The Institute of Chartered Accountants of Scotland (ICAS), The Institute of Chartered Accountants in Ireland (ICAI), The Association of Chartered Certified Accountants (ACCA) and The Chartered Institute of Public Finance and Accountancy (CIPFA).  

SORPS issued by CCAB apply to LLPs preparing accounts under UK GAAP to present a ‘true and fair view’.  CCAB has stated that “the underlying purpose of the SORP is to deal with issues that are specific to LLPs and ensure that, as far as possible, LLPs present financial statements that are comparable with those of other entities”. 

The Exposure Draft proposes updates to the LLP SORP as a result of amendments made by the Financial Reporting Council (FRC) to UK accounting standards in July 2015.  These amendments resulted in:

• The withdrawal of the FRSSE for accounting periods beginning on or after 1 January 2016;
• Amendments FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland to add a new section (Section 1A Small Entities) outlining presentation and disclosure requirements for small entities and making other changes necessary for continued compliance with company law; and
• The publication of FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime, a new standard available to entities choosing to apply the micro-entities regime. 

A number of changes are also proposed as a result of amendments made to the Limited Liability Partnerships (Accounts and Audit) Regulations 2016 (SI 2016/575) (“The LLP Regulations”) and the consequential amendments to FRS 105 that were issued in May 2016 to align the standard with recent changes to UK company law and make the micro-entities regime available to LLPs and qualifying partnerships 

The final SORP will be effective for accounting periods beginning on or after 1 January 2016.  However earlier adoption will be permitted for accounting periods beginning on or after 1 January 2015 provided that the LLP Regulations are applied from the same date. 

Click for (all links to CCAB website):

• Press release
• Draft Statement of Recommended Practice — Accounting by Limited Liability Partnerships.