Pass-through costs - show gross or net under UK GAAP / IFRS?

Pass-through costs - show gross or net under UK...

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Hi,

We are a services company and incur expenses on contracts that we pass on to customers. My instinct tells me that we should show the revenue gross of the expenses, but I can't find the relevant section of the accounting standards to back this up. Can anyone point me in the right direction? I am looking at both IFRS and UK GAAP.

Thanks,
Craig

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By cramatdel
04th Mar 2015 17:58

Can anyone help me on this?

Thanks.

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By jndavs
06th Mar 2015 08:38

FRS 102
Offsetting
2.52 An entity shall not offset assets and liabilities, or income and expenses, unless required or permitted by an FRS.
(a) Measuring assets net of valuation allowances (for example, allowances for inventory obsolescence and allowances for uncollectible receivables) is not offsetting.
(b) If an entity’s normal operating activities do not include buying and selling fixed assets, including investments and operating assets, then the entity reports gains and losses on disposal of such assets by deducting from the proceeds on disposal the carrying amount of the asset and related selling expenses.

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