I'm preparing FRS105 accounts for a business that provides a service to its customers and in doing so incurs several service costs (no products involved). My client does not invoice it's own customer upfront or mid-way, only once the full service has been provided.
At year-end there are several service costs incurred relating to contracts not delivered until after year-end. Are such costs carried forward as Work in Progress (Dr. B/Sheet, Cr. P&L)?