These are limited amendments to FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime. Early application is permitted only for accounting periods beginning on or after 1 January 2015. Around 3,500 LLPs are estimated to be able to benefit from the option of a simpler accounting approach.

Paul George, FRC executive director, corporate governance and reporting said: ‘In issuing these amendments we are reflecting a change in the law, which makes the simplified micro-entities regime that is already available to the smallest companies, also available to eligible LLPs and qualifying partnerships.’

The Department for Business, Innovation and Skills (BIS) held a brief consultation on the proposals to  extend the micro-entities regime to LLPs and qualifying partnerships at the end of last year. BIS says this has been reflected in these amendments to FRS 105.

In order to achieve this the definition of a micro-entity and other related glossary terms have been updated. The presentation and disclosure requirements applicable to the financial statements of LLPs and qualifying partnerships that adopt the micro-entities regime are almost identical to those applicable to the financial statements of companies that are micro-entities. Where there are differences these have been reflected in the amendments to FRS 105, the FRC says.

The regulator states the current recognition and measurement requirements of FRS 105 are also suitable for LLPs and qualifying partnerships applying the micro-entities regime and therefore no amendments have been made to the recognition and measurement requirements of FRS 105.

Amendments to FRS 105 – Limited Liability Partnerships and Qualifying Partnerships is here.