Disclosure required for corporate member of an LLP
deanshepherd
Registered Posts: 1,798 Beyond epic contributor 🧙♂️
I am getting some conflicting advice here so would be grateful of hearing others opinions.
I have an LTD client who is also a corporate member of an LLP.
Most people I have spoken to have told me that the company shows it's share of LLP profits as 'other income' and it's balance in the partnership capital account as investments on the LTD balance sheet.
This seems to conflict with FRS9 (para.48) which suggests disclosure is only required as a note (provided the LTD has no reason to prepare consolidated accounts).
Any thoughts?
I have an LTD client who is also a corporate member of an LLP.
Most people I have spoken to have told me that the company shows it's share of LLP profits as 'other income' and it's balance in the partnership capital account as investments on the LTD balance sheet.
This seems to conflict with FRS9 (para.48) which suggests disclosure is only required as a note (provided the LTD has no reason to prepare consolidated accounts).
Any thoughts?
0
Comments
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Hi,
What is the % holding by the Ltd Co in the LLP?
Best regards
Steve0 -
Hi Steve
I'm awaiting a copy of the partnership agreement but I strongly expect LTD will have 100% profit share (although this will probably be recorded as variable in the partnership agreement) and 0% rights to capital which will belong to the two other partners - both living and both 50% director/shareholders in the LTD.
Thanks,
Dean0 -
Quick bump..0
