CCAB announces today that it has published its draft Statement of Recommended Practice (SORP) on accounting by Limited Liability Partnerships (LLPs) for comment.  The SORP applies UK generally accepted accounting practice (GAAP) to LLPs incorporated in the UK and the Republic of Ireland.

The underlying purpose of the SORP is to ensure that, as far as possible, LLPs present financial statements that are comparable with those of limited companies.  As a consequence of the introduction of a new UK GAAP regime that sees all extant SSAPs, FRSs and UITF abstracts being replaced with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), we are now publishing an Exposure Draft of a revised SORP. 

Andrew Vials, Chairman of the CCAB SORP LLPs Steering Group, said: “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 Chairman, Anthony Harbinson, commented: “While many of the proposed changes are relatively straightforward and will not affect existing practice, others – such as the updated guidance on business combinations, group accounts, contractual or constructive obligations and annuities – are more substantive. We therefore encourage constituents to consider the exposure draft carefully and look forward to hearing their views on it."