Partnership structures have been at the forefront of the minds of many lawyers as we gear up for the year-end.
More than the usual amount of care is required this year – if firms have not already adopted the new accounting standards for revenue recognition, they must now do so.
Partners had also feared that additional tax bills, caused by a change in the way work in progress (WIP) is calculated, would have to be paid in a single year. However, Chancellor Gordon Brown abated such concerns when he trailed a relaxation of the rules in his pre-Budget statement late last year.
This Partnership Special Report examines these developments, as well as debating the enforcement of restrictive covenants in a limited-liability partnership (LLP).
It also looks at the impact of International Financial Reporting Standards on LLPs, which if adopted by larger firms mean a new accounting treatment of certain assets, costs, liabilities and revenues.