During the year, the members undertook a strategic review of the structure of the LLP and its related entities considering changes to tax legislation and the continued development of the group’s commercial operations.
As part of this review, certain non-audit activities have, in practice, been undertaken by Fruition Accountancy Limited, while the LLP has increasingly focused on regulated audit work and associated professional services. However, at the balance sheet date, no legally binding agreement had been entered into to transfer the trade, goodwill, or other assets of the LLP to Fruition Accountancy Limited or to any other entity. Accordingly, the LLP continues to recognise goodwill arising on the acquisition of the business in prior periods within intangible assets at the balance sheet date, and the LLP remains a continuing trading entity at that date.
The members intend to complete a formal restructuring of the LLP and related entities after the year end. This may include changes to the allocation of activities between entities and the eventual cessation of the LLP. Any transactions arising from this restructuring will be accounted for in the period in which they are legally completed.