The SORP has now been updated to reflect the LLP regulations that were issued in May 2016 and has also been updated to reflect earlier changes that have been made to FRS 102 and 1a. It can be used now as it applies for all periods commencing on or after 1 January 2016. This is the date from when the regulations applied. The changes mainly affect small LLPs and provide them with the opportunity to use similar reporting relaxations to those that have been available to limited companies.
The SORP also contains ‘a number of minor clarifications … including amending the existing guidance to address diversity in practice on how "automatic divisions" of profits are accounted for’.
The SORP does not apply to LLPs that choose to apply the micro-entities regime and the LLP SORP states that ‘such LLPs should apply FRS 105 only’. It is stated in the SORP that ‘where a micro-LLP enters into a transaction that is not covered by FRS 105, it is required to refer to the concepts and principles set out in Section 2 Concepts and Pervasive Principles of that standard when determining its accounting policies’.
