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CCAB Issue Revised LLP SORP

The CCAB has issued a revised Statement of Recommended Practice – Accounting by Limited Liability Partnerships (LLPs SORP) and their Press Release states that the LLP SORP has been updated for:

  • “Changes to the definitions included in the SORP relating to divisions of profit with further consequential amendments throughout the SORP to ensure consistency of terminology;
  • Additional guidance to help determine when an LLP has an unconditional right to avoid delivering cash or other assets to members;
  • Changes to the ordering of the SORP to ensure that the guidance on the division of profits is presented together, reduce duplication, and improve the overall flow of the document;
  • Additional guidance which sets out the basis for alternative classifications of cash flows relating to profit distributions; and
  • A requirement for LLPs to disclose their accounting policy for classifying distributions of profits in the cash flow statement and that cash flows be classified consistently from period to period.”

The revised LLP SORP applies to accounting periods commencing on or after 1 January 2022, with early adoption permitted.

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