25. | The annual report should comprise: |
![]() | the financial statements (SI 2008/1911); |
![]() | a statement of members' responsibilities in relation to the production of financial statements; and |
![]() | a report on the financial statements by a registered auditor, if required by the LLP Regulations (SI 2008/1911). |
26. | The financial statements, as defined by the LLP Regulations (SI 2008 1911/1912/1913) and accounting standards, should, subject to exemptions for small entities, comprise: |
![]() | a statement of financial position; |
![]() | either: |
– | a single statement of comprehensive income displaying all items of income and expense recognised during the period including those items recognised in determining profit or loss and items of other comprehensive income; or |
– | a separate income statement and a separate statement of comprehensive income; |
![]() | a statement of changes in equity; |
![]() | a statement of cash flows;7 and |
![]() | notes, comprising a summary of significant accounting policies and other explanatory information. |
26A. | In certain circumstances, paragraph 3.18 of FRS 102 allows entities to present a single statement of income and retained earnings in place of the statement of comprehensive income and statement of changes in equity. However, this SORP does not recommend this approach for LLPs as it will be of little benefit to users of LLP financial statements in most cases. |
26B. | The 2008 Regulations as amended by SI 2016/575 (SI 2008 1913 schedule 1, part 1, paragraph 1A / SI 2008 1912 schedule 1 part 1 paragraph 1B) provides LLPs with the opportunity to adapt the formats of the balance sheet and profit and loss account, in a manner consistent with IAS 1. FRS 102 paragraphs 4.2A to 4.2D and 5.5B to 5.5C set out the requirements for large and medium sized LLPs and FRS 102 paragraphs 1AA.3 to 1AA.6 and 1AB.3 to 1AB.4 set out the requirements for small LLPs. |
26C. | An LLP choosing to adapt the formats is permitted to do so providing the information given is at least equivalent to the information required by the formats set out in the LLP Regulations. To meet this requirement this SORP requires separate disclosure in the balance sheet of 'Loans and other debts due to members' (balance sheet item J) and 'members' other interests' (balance sheet item K) and separate disclosure in the profit and loss account of 'Profit or loss for the financial year before members' remuneration and profit shares'. |
7 Qualifying entities (as defined by FRS 102) may wish to take advantage of the exemption from the requirement to produce a cash flow statement as set out in paragraph 1.12 (b) of FRS 102. Small LLPs are not required to prepare a cash flow statement. |
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