My ltd client flips properties. That is to say that they exchange to buy either i) a property or ii) some land, then a) do a small amount of work on the property or b) get planning permission for the land, then do a back2back purchase & sale completion. Land exchange is dependant on planning.
YE situations that I need opinions as to my treatment under are:
1. land that has been 'purchase' exchanged (purchase deposit paid), legal fees spent awaiting planning permission = stock?
2. property that had had been 'purchase' exchanged (purchase deposit paid), had work done on it = FA, showing the balance on completion as an accrual?
I'm planning to report under FRS105, how would comments change if I reported under FRS102s1A?