Audit thresholds for Limited Liability Partnerships are on the move. LLPs are now able to take advantage of the European Union’s Accounting Directive. 

The European Union’s Accounting Directive has been applied to Limited Liability Partnerships (LLPs) through the approval of statutory instrument 2016/545. This statutory instrument applies increased thresholds for size and to determine if an audit is required to LLPs for accounting periods commencing on or after 1 January 2016.

An LLP can choose to apply the increased size thresholds one year earlier, for periods commencing on or after 1 January 2015. The current thresholds are used to determine whether an audit is required for this earlier accounting period.

There are many factors that the members should consider when deciding whether to adopt the new size thresholds for this earlier accounting period. This will include:

• Requirements for finance providers, such as the bank

• Expected growth of the business

• Tenders requirements (if applicable)

• Specific requirements included within the LLP agreement

If you have any questions on the new regulations and how the adoption of these will affect your LLP please email me or contact your usual Johnston Carmichael adviser.