News May 2016 FRC issues amendments to FRS 105 to bring limited liability partnerships and qualifying partnerships

FRC issues amendments to FRS 105 to bring limited liability partnerships and qualifying partnerships within the scope of the micro-entities regime

17 May 2016
PN 26/16


The Financial Reporting Council (FRC) has today issued Amendments to FRS 105 – Limited Liability Partnerships and Qualifying Partnerships (PDF).  Following a change in legislation, which comes into force today, limited liability partnerships (LLPs) and qualifying partnerships can apply the micro-entities regime and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime has been amended to reflect this.

Paul George, Executive Director, Corporate Governance and Reporting said:

“In issuing these amendments we are reflecting a change in the law, which makes the simplified micro-entities regime that is already available to the smallest companies, also available to eligible LLPs and qualifying partnerships.”

Respondents to a consultation by the Department for Business, Innovation and Skills (BIS) supported extending the micro-entities regime to LLPs and qualifying partnerships, including permitting early application from 1 January 2015. This has been reflected in these amendments to FRS 105, which are applicable for accounting periods beginning on or after 1 January 2016, with early application permitted from 1 January 2015 in conjunction with the changes in legislation.  BIS estimates that approximately 3,500 LLPs might be able to benefit from these changes
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Notes to editors:

1.         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.

2.         Read or download the Impact Assessment (PDF).