A practised approach

Article Abstract:

The Consultative Committee of Accountancy Bodies (CCAB) published a revised Statement of Recommended Practice (SORP) on Accounting by Limited Liability Partnerships (LLPs) to soften the impact of accounting changes on LLP accounts. Under this, if a member is entitled to a repayment of capital on leaving the LLP, then this capital would appear as a loan in the balance sheet and with this, some LLPs can have no equity capital, at least in accounting terms.

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Criminal record fears for auditors

Article Abstract:

The Company Law Reform Bill is back in the Commons and will go into report stage from July 13, 2006 after receiving 1600 amendments in the Lords and the accountants. The accountants have voiced their protest against the proposed new criminal offence in the bill on the grounds that the bill would make auditors more cautious, which could mean more companies being pushed into insolvency, the very situation the bill was trying to avoid.

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New SORP for LLPs

Article Abstract:

New radical changes are introduced for Limited Liability Partnerships (LLPs) with proposals for an amended Statement of Recommended Practice (SORP). The amounts contributed by members to the LLP will be shown as debt rather than equity, unless the LLP has the right to withhold repaying and members' remuneration will be charged as an expense in the profit and loss account under the new proposals.

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