CCAB publishes new edition of the LLPs SORP

A revised version of the LLP SORP has been published, updating its provisions for the 2017 Triennial review of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The CCAB considered whether the 2017 Triennial Review amendments created any issues specific to LLPs and concluded that only limited although important changes to the SORP were required. A public consultation on the proposed changes was published on 1 August 2018, and comments received were considered before the new version of the SORP was finalised.

The changes include updates to the guidance on:

  • cash flow statement presentation, to reflect the new FRS 102 requirement to disclose the changes in net debt between the beginning and end of the financial period;
  • accounting by small LLPs, to reflect the simpler recognition and measurement requirements available to small entities when accounting for certain loans; and
  • merger accounting to reflect the extended definition of a group reconstruction.

Additional guidance is provided on the revised recognition rules for intangibles assets acquired in a business combination and minor clarifications have also been made to the SORP where required to maintain consistency with the revised FRS 102.

The December 2018 version of the 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, although there are some limited exceptions to this rule.

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