Work in progress

Work in progress

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Can someone clear something up please.

Company manufactures and designs furniture, should WIP be recorded at cost or should an element of profit be provided and actually the adjustment would go against Accrued income and not WIP.

Contracts are signed with customer before manufacture takes place.

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By johngroganjga
20th Apr 2016 14:29

UITF40

UITF 40 is about contracts to provide services only. So you can forget about it.

So it's SSAP9 and the lower of cost and nrv,

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By Melody
20th Apr 2016 14:23

Cost (or NRV if lower).
If nothing has been delivered to the customer there is no accrued income.

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