.png)
.png)
FRS 5
The Accounting Standards Board has issued Urgent Issues Task Force Abstract 40 which gives guidance on the recognition of income from professional and other services. This followed the issue of Application Note G to FRS 5 in November 2003. There was considerable controversy following the issuing of the application note over whether it required service providers to recognise at year end the income which would in due course become billable but which could not yet be billed because the work was incomplete.
The UITF abstract says that where the substance of a contract is that the seller's contractual obligations are performed gradually over time revenue should be recognised as contract activity progresses to reflect the seller's partial performance of its contractual obligations. In these circumstances it is considered 'inappropriate' to defer recognition of revenue until contract completion. This does not apply where the income is...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
