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Impact Assessment: Amendments to FRS 105 The FRS applicable to the Micro-entities Regime - LLPs and

Impact assessment

Introduction

1The Financial Reporting Council (FRC) is committed to a proportionate approach to the use of its powers, making effective use of impact assessments and having regard to the impact of regulation on small enterprises.

Amendments to FRS 105 – Limited Liability Partnerships and Qualifying Partnerships

2The amendments to FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime are intended to align the scope of FRS 105 with the legal framework for the micro-entities regime.

3The micro-entities regime is a simplified reporting regime and therefore the extension of this regime to eligible limited liability partnerships and qualifying partnerships is intended to be deregulatory. The Department for Business, Innovation and Skills (BIS) prepared an Impact Assessment for the changes in legislation and hence no further impact assessment has been prepared by the FRC in this respect.

Conclusion

4FRS 105 is a cost-effective solution for financial reporting by micro-entities in the UK and Republic of Ireland, given the nature of the legal requirements of the micro-entries regime. The FRC believes that the amendments to FRS 105 reflect the expansion of the micro-entities regime to LLPs and qualifying partnerships, and will ensure its scope is in line with those entities eligible to apply the regime.

The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries, and oversee the regulatory activities of the accountancy and actuarial professional bodies.

The FRC does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it.

The Financial Reporting Council Limited 2016 The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered Office: 8th Floor, 125 London Wall, London EC2Y 5AS

Financial Reporting Council 8th Floor 125 London Wall London EC2Y 5AS +44 (0)20 7492 2300 www.frc.org.uk

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Name Impact Assessment: Amendments to FRS 105 The FRS applicable to the Micro-entities Regime - LLPs and

Impact Assessment: Amendments to FRS 105 The FRS applicable to the Micro-entities Regime - LLPs and