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WIP in a Consultancy Partnership

I work for a Project management company (a ltd partnership) which has been informed that we could account for WIP in our Balance Sheet. There are no salaries in the company only the main partner who receives drawings each month. It would be his cost that we would transfer to WIP if viable. The other alternative I have seen is to to not account for WIP, but instead merely accrue unbilled hours completed but not yet billed on projects. Can anyone advise?


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02nd Apr 2012 18:00


Check SSAP 9 and UITF 40. 


Surely by accruing unbilled hours you are somehow accounting for the WIP, you just might not know it! 

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11th Apr 2012 14:50

Thanks for that. However my question is do I merely accrue income in the balance sheet relating to hours put in to the contracts but not yet billed or should I actually disclose a WIP valuation in the accounts instead? Currently neither practices are being followed.

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