Corporate and M&A

Contact: Boodle Hatfield (London, England)

On 20 November the Department for Business, Innovation & Skills published for consultation proposed changes to the financial reporting requirements for LLPs and the introduction of a new micro-entity accounting regime for LLPs and qualifying partnerships. The proposed changes are similar to those made to the financial reporting regime for companies which came into force in April this year, and the proposals include:

• Increasing the thresholds used to determine the size of LLPs.
• Reducing the number of mandatory disclosure notes required of small LLPs.
• Providing LLPs with the option to use alternative or customised layouts when preparing their profit and loss account and balance sheet.
• Allowing small LLPs to prepare an abridged balance sheet and profit and loss account, if approved by all members of the LLP.
• Introducing a micro-entity regime for LLPs with reduced reporting requirements where certain conditions are met.

The consultation will close on 21 December 2015 and it is intended that the regulations will be made by summer 2016 with the new requirements applying to financial years commencing on or after 1 January 2016.