If a company raises sales in the year, but all the work relates to the 12 months after the year end (i.e the whole of the next accounting period), can we choose whether to net the amount off trade debtors or treat it as a 'deferred income' creditor? can anyone point me towards the guidance on this as im having difficulties finding any!
thanks
JD
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FRSSE 2008 shows the correct
FRSSE 2008 pages 34-35 gives the correct treatment.
If you have not earned the right to consideration by performing whatever it is that you do, you cannot recognise a debtor or, as the logical consequence - revenue.
SA