On 8 March 2016, draft regulations (the Limited Liability Partnerships, Partnerships and Groups (Account and Audit) Regulations 2016) were published and laid before Parliament, which introduce changes to the accounting regulatory framework for LLPs. Broadly, these changes reflect those introduced for companies in the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015.
The key changes included in the draft regulations include:
- an increase in the turnover and balance sheet thresholds used to determine whether an LLP or group qualifies as “small” or “medium” sized;
- a limit for small LLPs on the number of mandatory notes to the accounts;
- provisions which enable LLPs to adapt the formats for profit and loss accounts and balance sheets;
- permitting abridged balance sheets and profit and loss accounts for small LLPs in circumstances where this is approved unanimously by the members of the LLP; and
- permitting the use of the equity method of accounting in individual LLP accounts.
The regulations apply to financial years commencing on or after 1 January 2016. They will come into force on the seventh day after they are made.
The draft regulations are available here: