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  • Publicado : 6 de octubre de 2010
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It is not always necessary or desirable that the accounting records of a limited liability partnership be restated to carry net assets at current fairvalue for every change in membership of the firm. In determining whether a change in asset valuations is appropriate, an accountant should consider thesubstance of the event rather than its form. How significant is the change in ownership? Does the need for consistency and continuity in the accountingrecords outweigh the argument that a change in ownership has established a new accounting basis for the partnership’s assets?
For example, assume thatpartners A and B share net income and losses of A & B LLP equally, and they sell a 90% interest in the partnership to C for an amount equal to twicethe carrying amount of the partnership’s net assets. There are strong reasons to revise the accounting records to show the current fair values acquired bythe new partnership in which C is the dominant owner.
In contrast, assume that partners X and Y share net income and losses of X & Y LLP equally, andthat Z is to be admitted to the partnership by the transfer of a 5% interest from Y’s capital account. This minor change in ownership probably does notwarrant changing the carrying amount of the partnership’s assets.
Finally, the amount paid to a retiring partner (or the investment required by a newpartner) may be set at an amount that reflects current fair values without a change in asset valuations in the accounting records of the partnership.
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