If the transitional accounting period ends on or before 30th April 2000, the firm will need to ask the Law Society to send the new form (instead of the old form) in time for preparation of the accountant’s report on the transitional accounting period.
In relation to that part of the transitional accounting period when the firm was operating under the old rules, the reporting accountant should endorse at the top of the new form: ‘For the period ....... to ....... this report relates to compliance with the Solicitors’ Accounts Rules 1991’.
The reporting accountant has to make the appropriate comparisons for at least two dates during the transitional accounting period. It will be for the accountant to select the number and dates of the comparisons. The accountant may consider it appropriate to do two comparisons only.
The accountant may choose one comparison date in the period when the firm was operating the old rules (and will carry out that comparison in accordance with the Accountant’s Report Rules), and a second comparison date in the period when the firm was operating the new rules (and will carry out that comparison in accordance with Part F of the new rules). Alternatively, both dates could be in the period when the firm was operating the new rules. Indeed, both dates could be in the earlier period, but this may be unlikely, given the standard procedure, validated by the rules, of selecting the last day of the accounting period as one of the comparison dates.
The reporting accountant will complete the new checklist. In relation to that part of the transitional accounting period when the firm was operating under the old rules, the accountant should endorse at the top of the new checklist: ‘Any checks made in respect of the period ....... to ....... relate to compliance with the Solicitors’ Accounts Rules 1991’.
Example: The firm implements the new rules on 1st May 2000, part way through its accounting period, which runs from 1st September to 31st August. The firm delivers an accountant’s report on the new form covering the whole 12-month period 1st September 1999 to 31st August 2000, to be delivered by 28th February 2001. The form is endorsed: ‘For the period 1st September 1999 to 30th April 2000 this report relates to compliance with the Solicitors’ Accounts Rules 1991.’ The accountant completes the new checklist, which is endorsed: ‘Any checks made in respect of the period 1st September 1999 to 30th April 2000 relate to compliance with the Solicitors’ Accounts Rules 1991.’
Option (b)
The firm decides that it will deliver two separate ‘short’ accountant’s reports for the transitional accounting period, one made on the old form to cover the period when the firm was operating the old rules, and one made on the new form to cover the period when the firm was operating the new rules. The first report will have to be delivered six months after the end of the period to which it relates. The second report will have to be delivered six months after the end of the transitional accounting period. The reporting accountant will have to select at least two comparison dates for the first report, plus at least two comparison dates for the second report.
The firm will need to ask the Law Society to send an accountant’s report form (the old form) in time for preparation of the accountant’s report on the first part of the transitional accounting period.
The reporting accountant should endorse at the top of the first report: ‘Short report under rule 50(5)(b) for the period ....... to ......., being the 1st part of the transitional accounting period’. The second report should be endorsed: ‘Short report for the period ....... to ......., being the 2nd part of the transitional accounting period’.
Example: The firm implements the new rules on 1st May 2000, part way through its accounting period, which runs from 1st September to 31st August. The first report (on the old form) will cover the eight-month period 1st September 1999 to 30th April 2000, to be delivered by 30th October 2000. The second report (on the new form) will cover the four-month period 1st May 2000 to 31st August 2000, to be delivered by 28th February 2001.
Legal
Disclaimer
For Contact Information click on the logo's at the top of the screen.
[ Home | Bookkeeping | Legal Recruitment | Consultancy | Site Map ]
Help