Accounts and audit for LLPs

By Tolley in association with Jackie Barker of Wells Associates

The following Owner-Managed Businesses guidance note by Tolley in association with Jackie Barker of Wells Associates provides comprehensive and up to date tax information covering:

  • Accounts and audit for LLPs
  • General accounting requirements
  • Micro, small, medium or large
  • Companies house requirements
  • Audit requirements

This note explains the legal requirements that an LLP must meet in connection with its accounting and auditing requirements and outlines what information must be filed with Companies House. The legislation which sets out the accounting requirements in relation to LLPs is included in the following statutory instruments:

  • The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, SI 2008/1911
  • The Small Limited Liability Partnerships (Accounts) Regulations 2008, SI 2008/1912
  • The Large and Medium sized Limited Liability Partnerships (Accounts) Regulations 2008, SI 2008/1913

These statutory instruments have been amended and updated by the following regulations:

  • The Companies and Limited Liability Partnerships (Accounts and Audit Exemptions and Change of Accounting Framework) Regulations 2012, SI 2012/2301
  • The Companies and Partnerships (Accounts and Audit) Regulations 2013, SI 2013/2005
  • The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016, SI 2016/575

The above regulations apply, with modifications, the accounting and auditing provisions of the Companies Act 2006 to LLPs. In preparing accounts that reflect a true and fair view of the financial position of an LLP, the LLP would also apply a financial reporting standard as appropriate, ie FRS 101, FRS 102, FRS 105 (see the Introduction to new UK GAAP guidance note) or International Financial Reporting Standards (IFRS).

If an LLP adopts FRS 102, how this reporting standard should be applied in the case of the LLP is guided by the Consultative Committee of Accountancy Bodies’ statement of recommended practice (SORP). The SORP for ‘Accounting by LLPs’  was updated and issued in December 2018 for accounting periods commencing on or after 1 January 2019, although early adoption was allowed.

FRS 105 only applies to micro entities, and if LLPs adopt FRS 105 they will not have

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