Sections 394 to 397 [Section 395 was amended by regulation 9 of S.I. 2008/393.] apply to LLPs, modified so that they read as follows -

"394. Duty to prepare individual accounts

The members of every LLP must prepare accounts for the LLP for each of its financial years unless the LLP is exempt from that requirement under section 394A.

Those accounts are referred to as the LLP's "individual accounts".

394A. Individual accounts: exemption for dormant subsidiaries

(1) An LLP is exempt from the requirement to prepare individual accounts in a financial year if -

(a) it is itself a subsidiary undertaking,

(b) it has been dormant throughout the whole of that year, and

(c) its parent undertaking is established under the law of any part of the United Kingdom.

(2) Exemption is conditional upon compliance with all of the following conditions -

(a) all members of the LLP must agree to the exemption in respect of the financial year in question,

(b) the parent undertaking must give a guarantee under section 394C in respect of that year,

(c) the LLP must be included in the consolidated accounts drawn up for that year or to an earlier date in that year by the parent undertaking in accordance with -