The Large and Medium-sized Limited Liability Partnerships (Accounts) Regulations 2008

SECTION A U.K. ACCOUNTING PRINCIPLES

Preliminary U.K.

10.—(1) The amounts to be included in respect of all items shown in an LLP's accounts must be determined in accordance with the principles set out in this Section.

(2) But if it appears to the LLP's members that there are special reasons for departing from any of those principles in preparing the LLP's accounts in respect of any financial year they may do so, in which case particulars of the departure, the reasons for it and its effect must be given in a note to the accounts.

Accounting principles U.K.

11.  The LLP is presumed to be carrying on business as a going concern.

12.  Accounting policies [F1 and measurement bases] must be applied consistently within the same accounts and from one financial year to the next. U.K.

Textual Amendments

F1 Words in Sch. 1 Pt. 2 s. A para. 12 inserted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 (S.I. 2016/575), regs. 2(1), 52(a)

13.  The amount of any item must be determined on a prudent basis, and in particular— U.K.

(a) only profits realised at the balance sheet date are to be included in the profit and loss account, F2 ...

(b) all liabilities which have arisen in respect of the financial year to which the accounts relate or a previous financial year must be taken into account, including those which only become apparent between the balance sheet date and the date on which it is signed on behalf of the members in accordance with section 414 of the 2006 Act (approval and signing of accounts).

[F3 (c) all provisions for diminution of value must be recognised, whether the result of the financial year is a profit or a loss,

(d) at the balance sheet date, a provision must represent the best estimate of the expenses likely to be incurred or, in the case of a liability, of the amount required to meet that liability, and

(e) provisions must not be used to adjust the value of assets.]

Textual Amendments

F2 Word in Sch. 1 Pt. 2 s. A para. 13(a) omitted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by virtue of The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 (S.I. 2016/575), regs. 2(1), 52(b)(i)

F3 Sch. 1 Pt. 2 s. A para. 13(c)-(e) inserted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 (S.I. 2016/575), regs. 2(1), 52(b)(ii)

14.  All income and charges relating to the financial year to which the accounts relate must be taken into account, without regard to the date of receipt or payment. U.K.

15.  In determining the aggregate amount of any item, the amount of each individual asset or liability that falls to be taken into account must be determined separately. U.K.

[F4 15A.   The opening balance sheet for each financial year must correspond to the closing balance sheet for the preceding financial year.] U.K.

Textual Amendments

F4 Sch. 1 Pt. 2 s. A para. 15A inserted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 (S.I. 2016/575), regs. 2(1), 52(c)