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The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 (SI 2016/575)
https://www.legislation.gov.uk/uksi/2016/575/pdfs/uksi_20160575_en.pdf
The LLP Regulations 2016 has been introduced in order to align the financial reporting regimes for LLPs and companies. It also introduces new ‘micro-entities regimes’ for LLPs and qualifying partnerships. The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 updates are very similar to that of the Limited Company Regulations 2015, therefore similar changes have been made to the Accounts Production software for LLPs as they were for Limited Companies.
FRSSE is no longer applicable for periods ending on or after 01/01/2016 (or early adoption).
Updates made by the Financial Reporting Council (FRC) to the accounting standards previously, alongside the new Regulations 2016 will now also apply to LLP’s.
FRS 102 has been updated extensively to reflect the changes imposed by updates to UK company law as per Regulations 2015/Regulations 2016 and most specifically for 'Small Entities'.
A new section has been included within FRS 102, 'Section
1A – Small Entities' which must be applied for all entities preparing
financial statements under the Small LLP’s Regime.
The following is a summary of changes within Accounts Production to
facilitate the requirements of changes in legislations:
Postings
New Accounts Standard 'Sub-Standard' field (within New/Change Posting Entry window)
Option to select 'Section 1A'
Used as a visual aid – this does NOT control report output. Output is still controlled by the data screens.
Tool Bar
Data Screens
Auto-refresh on selected screens (where a change has been made) – allows screens/folders to be shown based on standard selected
UK (FRS 102) | Regulations 2016 – only visible for periods starting on or after 01/01/2015 but before 1.1.16 (used for early adoption of Regulations)
UK (FRS 102) | Small LLPs | Financial Statements – now includes additional options within ‘Small LLPs Regime’ screen (due to increase in disclosures not being mandatory).
New ‘FRS 102 – Section 1A’ screen provides options for disclosures 'Encouraged' under FRS 102 – Section 1A.
UK (FRS 102) | Small LLPs | Abridgement – option to 'Consent to Abridgement'. Also shows details on what ‘Abridgement’ of Profit and Loss account and/or Balance Sheet (under Part 1, Schedule 1 of the Small LLPs Regime) entails.
UK (FRS 102) | Small LLPs | Accounts to Registrar – allows either Report of the members OR All statutory financial reports (exc Report of the members) to be included within report ABR (Accounts to Registrar).
By default report ABR will include a Balance Sheet (and related notes) only. This is expected to be appropriate for most so this data screen won’t be relevant in most cases.
All other options are still available under the main Notes to Financial Statements folder
UK (FRS 102) | Cash Flow Statement/First Year Adoption – neither of these folders will appear by default where the Small LLPs Regime (and Regulations 2016) applies. Only where selection has been made within the ‘FRS 102 – Section 1A’ data screen for ‘Encouraged’ disclosure will the screen auto refresh and the folder(s) appear.
A number of other changes have been made to facilitate the changes required by UK company law (and FRS 102)
New data screens (include):
Statutory Information
Statement of Compliance
Average Number of Employees – exception given where the figure is not entered within the data screens.
Non - Small LLPs Regime – Fixed Asset Investments folder contains the Related Undertakings folder – Subsidiary/ Associated Companies/Joint Venture information not shown unless override ticked.
Changes to the Related Party folder/ Old Legislation, etc /NTFS/Other Disclosures/RPD
Reports
These can be forced for Small LLP’s applying FRS 102 – Section 1A.
Abridgment of Profit and Loss Account and/or Balance Sheet
People may well refer to these as Abridged Accounts although there is no such reference to such within UK company law – like there was Abbreviated Accounts
Consent MUST be given (option with data screens – see above)
Applies to financial statements prepared for BOTH ‘Members’ (LLP) and ‘Registrar’ (ABR)
Content of Profit and Loss Accounts changes to combine 4 of first 5 headings under 'Gross Profit'.
Balance Sheet content itself doesn’t changes – however related notes will be simplified, for example, Fixed Asset notes will show a ‘Total’ column only (rather than a column for each asset).
Members/Registrar
If report 'ABR' is generated and 'consent' has been given a prompt will appear to allow choice of Member/Registrar.
Transition
Abbreviated accounts
New Report Output
Profit and Loss format changes; ‘Other external charges’ now call ‘Other external expenses’, ‘Other operating charges’ is called ‘Other operating expenses’, ‘Interest payable and similar charges’ now called ‘Interest payable and similar expenses’. NO extraordinary items.
Report output – exceptional items note, items now listed. Where note has been replace NOR report received.
Small LLPs Regime – Fixed Asset Investments – where postings have been made to Listed Investment Account 556 and Unlisted Investment 557, this is now totalled into one column headed Other investments unless overridden (investments tick box).
Report output - changes to Reserves note where Small LLPs Regime applies? Only shows account 970 unless ticked to override.
FRS 105 is a new reporting standard
for Micro Entities. LLP’s are now able to produce micro-entities by applying
FRS 105. The behaviour of Accounts Production for FRS 105 is very similar
to Limited Companies.
Accounting Standard
Data Screens
Notes to Financial Statements folder only has 2 notes, this is similar to LTD Companies.
Reports