SORP for limited liability partnerships

The CCAB has published a new edition of the LLPs SORP

On 14 December 2018 the CCAB (Consultative Committee of Accountancy Bodies) published a new edition of the limited liabilities partnerships (LLPs) SORP.

Its underlying purpose 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 SORP has been updated for the 2017 Triennial review of FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The CCAB considered whether the 2017 Triennial Review amendments created any issues specific to LLPs and concluded that only limited, although important, changes to the LLPs SORP were required. These include updates to:

  • the guidance on cashflow statement presentation to reflect the new requirement to disclose the changes in net debt between the beginning and end of the financial period
  • the guidance on accounting by small LLPs to reflect the simpler recognition and measurement requirements available to small entities when accounting for certain loans
  • provide additional guidance on the revised recognition rules for intangibles assets acquired in a business combination
  • the guidance on merger accounting to reflect the extended definition of a group reconstruction.

Other minor clarifications have also been made to the LLP SORP, where required, to maintain consistency with the revised FRS 102.

The updated SORP is effective for periods commencing on or after 1 January 2019. Early adoption is permitted, provided that all amendments are adopted from the same date, with some limited exceptions to this rule.