Apologies for this but having had to read FRS5/SSAP9/UITF40 in respect of a trading client who has short-term contracts and some speculative work my understanding is that the sales value of the incomplete work relating to the contracted work should be recognised in the accounts at the year end thereby offsetting related costs incurred to date to leave attributable profit and leaving no WIP - only holding stocks being the main constituent of the generic "closing stocks/WIP" figure ie applying FRS 5 as contracts are in place - wheras UITF40 generally only applied to services. If no contract is in place SSAP9 applies ie to the speculative work where no buyer in place - has there been any change to my understanding? - thanks
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Broadly, I agree
I'm not sure I understand you fully, but, broadly, the effect of the UITF 40 was to replace costs carried forward with a debtor: this debtor was the value of right to consideration in respect of work completed or in progress.
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