Are you allowed to accrue an uninvoiced cost of a tangible fixed asset?
Here is the scenario:
Suppose you've been quoted £10K from a supplier for website development over a 3 month period. 30% was invoiced and paid upfront before any work commenced. The development did not go according to plan and by the end of the year (12 months later), development work was only 70% complete. No invoice has been issued for the remainder of this work completed.
Is one allowed to accrue the additional 40% cost of this fixed asset (given the current working state of the website) which will also allow the company to claim a higher capital allowance in the first year due to AIA?
At what stage does one start depreciating the asset? Only following 100% completion? If that is the case, can you only claim AIA at this stage?
Thanks for your input.
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