CCAB publishes revised LLP SORP
The Consultative Committee of Accountancy Bodies (CCAB) has published an updated version of the statement of recommended practice – accounting by limited liability partnerships (LLPs SORP), designed to take into account revisions to FRS 102
19 Dec 2018
The SORP has been updated to bring it into line with the 2017 triennial review of FRS 102 and to ensure that, as far as possible, LLPs present financial statements that are comparable with those of other entities. CCAB concluded that only limited although important changes to the LLPs SORP were required as a result of amendments to the standard.
These include updates to the guidance on cash flow statement presentation to reflect the new requirement to disclose the changes in net debt between the beginning and end of the financial period; and the guidance on accounting by small LLPs to reflect the simpler recognition and measurement requirements available to small entities when accounting for certain loans.
In addition, the revised SORP provides additional guidance on the revised recognition rules for intangibles assets acquired in a business combination, and the guidance on merger accounting has been updated 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 all amendments are adopted from the same date, with some limited exceptions to this rule.
Report by Pat Sweet