Financial reporting for LLPs and micro-entities

The government has published responses to its consultation on changes to the regulatory accounting framework for LLPs and the introduction of a new micro-entity regime for LLPs and qualifying partnerships. The responses all broadly supported the aims of maintaining alignment between the financial reporting frameworks for companies and LLPs, and of reducing the administrative burdens for the smallest LLPs and qualifying partnerships.

In summary, the government:

·       will bring forward legislation to maintain the alignment between the two regimes;

·       will not introduce new requirements beyond those required to maintain consistency with changes introduced for companies;

·       will provide for the early adoption of the revised framework for LLPs, qualifying partnerships and groups that still have not agreed and filed their 2015 accounts prior to the regulations coming into force in 2016;

·       will introduce a micro-entity regime for LLPs and qualifying partnerships; and

·       will continue to require audit reports to be filed by LLPs that have, or are part of, a group where one of its members has transferable securities admitted to trading on a regulated market in an EEA state.

See http://bit.ly/1I40VDr.