The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations have now become law. These make changes to the accounting and reporting requirements for Limited Liability Partnerships (LLPs) which mirror those made last year for companies to implement the EU Accounting Directive.  Whilst LLPs do not fall within the scope of the EU Directive the changes have been made primarily for the purpose of maintaining consistency between company and LLP legislation and to simplify the accounting requirements for small LLPs.

The key changes for LLPs are the increased thresholds within which an LLP qualifies as small, and the requirement to include a full list of subsidiaries and other related undertakings in the notes to the accounts.

Although the most significant changes are likely to affect small companies (including whether they qualify based on size), some changes will affect large and medium-sized companies.

The regulation changes also extend the micro-entities regime to LLPs and qualifying partnerships. The FRC has also made consequential amendments to FRS 105 on micro-entities.

Most of these changes apply for financial years commencing on or after 1 January 2016, with early adoption permitted for many of the requirements.

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