Released 05 July 2021
The Consultative Committee of Accountancy Bodies (CCAB) has published an updated draft Statement of Recommended Practice (SORP) on accounting by Limited Liability Partnerships (LLPs).
The draft LLPs SORP has been updated in response to feedback that there is diversity in practice when interpreting whether divisions of profit are automatic or discretionary in certain situations.
Therefore the CCAB is proposing:
•changes to the definitions included in the SORP relating to divisions of profit;
•further consequential amendments throughout the SORP to ensure consistency of terminology;
•additional guidance to help determine when an LLP has an unconditional right to avoid delivering cash or other assets to members; and
•changes to the ordering of the SORP to ensure that the guidance on the division of profits is presented together, reduce duplication, and improve the overall flow of the document.
The draft LLPs SORP is open for comment until 24 September 2021. The proposed changes would be effective for financial years beginning on or after 1 January 2022.
Further information can be found at https://www.ccab.org.uk/consultation-draft-sorp-llps-2022/.