• Register
Return to: Home > News > Standards > CCAB consults on LLPs accounting

CCAB consults on LLPs accounting

The Consultative Committee of Accountancy Bodies (CCAB) has issued for comment a draft Statement of Recommended Practice (SORP) on accounting for limited liability partnerships (LLPs).

This is the fourth edition of the SORP entitled Accounting by Limited Liability Partnerships, which updates the one of 31 March 2010.

The need to review the SORP comes after earlier this year the UK Financial Reporting Council (FRC) issued FRS 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland.

Effective 1 January 2015, FRS 102 replaces the UK GAAP regime and will apply not only to non-listed companies but to all entities that should prepare financial statement, including financial institutions and charities.

In a statement CCAB said the underlying purpose of the SORP is to ensure that LLPs present financial statements that are comparable with those of limited companies.

"LLPs are a popular corporate vehicle for many small and medium-sized enterprises. The SORP has long established accounting practices for such bodies and ensures accountability and comparability. It now needs updating to bring it into line with the requirements of FRS 102," the CCAB SORP LLPs steering group chairman Andrew Vials said.

CCAB chairman Anthony Harbinson said that many of the proposed changes are straight forward and will not affect existing practice.

Harbinson added that other changes "such as the updated guidance on business combinations, group accounts, contractual or constructive obligations and annuities are more substantive".

According to the draft these substantive changes to SORP 2010 include:

  • Updating the guidance on business combinations and group accounts to reflect the fact that FRS 102 only allows merger accounting to be used for group reconstructions.
  • Updating the guidance on contractual or constructive obligations and annuities to reflect the fact that FRS 102's requirements relating to financial liabilities differ from current UK GAAP requirements.
  • Updating references throughout to reflect the introduction of the option to produce a single statement of comprehensive income, including adding an additional exhibit in appendix.

CCAB is recognised as a SORP-making body by the FRC. The five CCAB's members are the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants of Scotland, the Institute of Chartered Accountants in Ireland, the Association of Chartered Certified Accountants and the Chartered Institute of Public Finance and Accountancy.

The deadline to comment on the SORP is 10 January 2014

Related link
CCAB: Draf SORP Accounting by Limited Liability Partnerships


Top Content

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.