The Changing Face Of LLP Accounting

Following the revised SORP for LLPs, Clare Copeman surveys how larger firms are interpreting the rule changes in their members’ agreements and annual accounts.

The introduction of new accounting rules for Limited Liability Partnerships (LLPs) has changed the way many professional firms present their annual accounts, notably in the treatment of members’ balances and remuneration. These changes are due to the revised Statement of Recommended Practice (SORP) for LLPs, which applies for periods ending after 31 March 2006. The revised SORP not only impacts the way firms must deal with their accounts but, for some practices, has also led firms to review their members’ agreements. Given that the filing deadline for April 2006 year-ends has now passed, a number of annual accounts have been published that allow us to examine how different firms have been affected.