PracticeAuditUS partnerships keeping three sets of accounts

US partnerships keeping three sets of accounts

Triplicate books for US partnerships agreements

US companies that operate as partnership agreements, including
limited
liability companies (LLCs)
, are keeping as many as three sets of accounts,
according to Grant Thornton.

Taxnews.com reported the firm as saying that such companies usually only
maintained two sets of books: those prepared on a
generally accepted
accounting principles (GAAP)
basis and those prepared on a tax basis, but
were now also keeping a third set of accounts that reflect
Section
704(b)’
capital accounts regulations relating to their partnership
agreement.

‘Even though Section 704(b) books are not required to be shown on the
partnership’s tax return balance sheet, they need to be available as they
determine the economics of the deal,’ said Jerry Williford, a senior manager in
Grant Thornton’s US tax practice.

Further reading:

Grant Thornton survey finds private equity on defensive

Grant Thornton: UK companies shy away from China

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