Practice Tip - WIP is the big issue for the next year
Richard Murphy considers the impact of the recent UITF Abstract 40 dealing with revenue recognition.
The news that the UITF has finally decided that WIP on periodic contracts has to be recognised as income to the stage of service completion at the year end date will have a major impact on all firms of accountants and many of their clients.
UITF declarations do, of course, have the impact of being tax law. And what this one says is, in lay terms, quite simple.