BIM31080 - Tax and accountancy: timing of income and expenditure

There are some specific statutory rules governing the timing of relief for some specific expenditure and there is some case law which gives guidance on recognising income.

Guidance on income recognition is provided in FRS 102 Section 23 Revenue.

Related standards under other frameworks are:

FRS 105 Section 18 Revenue

IAS: IFRS 15 Revenue from Contracts with Customers

Old UK GAAP: FRS 5 Reporting the Substance of Transactions – Application Note G Revenue Recognition

Income is generally earned when goods are provided or services are performed. The timing of issuing bills, invoicing, or receiving payments does not determine when income should be recognised. The guidance at BIM31105 and BIM31110 looks at circumstances when goods or services are not provided.

BIM31090	Tax and accountancy: timing of receipts and expenditure: general principles derived from case law
BIM31095	Tax and accountancy: timing of receipts and expenditure: accountancy practice and case law developments
BIM31100	Tax and accountancy: timing of receipts and expenditure: anticipation of loss
BIM31105	Tax and accountancy: when to recognise profits: source is important
BIM31110	Tax and accountancy: recognition of deposits and compensation
BIM31115	Tax and accountancy: timing of income and expenditure: GAAP