Tax and accountancy: timing of income and expenditure
There are some specific statutory rules governing the timing of relief for some specific expenditure and there is some case law which gives guidance on recognising income. Guidance on income recognition under GAAP is in section 23 of FRS102, Application Note G to FRS5 and IAS18. The general approach is similar to the case law approach.
Income is generally earned when goods are provided or services are performed. The timing of issuing bills, invoicing, or receiving payments does not determine when income should be recognised. The guidance at BIM31105 and BIM31110 looks at circumstances when goods or services are not provided.
|BIM31090||Tax and accountancy: timing of receipts and expenditure: general principles derived from case law|
|BIM31095||Tax and accountancy: timing of receipts and expenditure: accountancy practice and case law developments|
|BIM31100||Tax and accountancy: timing of receipts and expenditure: anticipation of loss|
|BIM31105||Tax and accountancy: when to recognise profits: source is important|
|BIM31110||Tax and accountancy: recognition of deposits and compensation|
|BIM31115||Tax and accountancy: timing of income and expenditure: GAAP|