HMRC internal manual

Business Income Manual

BIM40075 - Receipts: general: when are they earned?

Guidance on income recognition under UK GAAP is in Application Note G to FRS5 (and SSAP9 in relation to long-term contracts), FRS102 in section 23 and under IAS in IAS18. See BIM31080 onwards. Broadly, receipts are ‘earned’ when goods are sold or services provided.