BIM74070 - Abolition of the cash basis: how to do 'true and fair view'

General overview

Much of the new basis of accounting is straightforward, for example, accruing rent and other liabilities over the period to which they relate rather than deducting the whole amount as and when paid. However, there are issues which are going to cause difficulties for professional businesses, especially the smaller ones

1. when to recognise debtors,
   
   
2. (especially for lawyers) how much to recognise as debtors.

and, for everyone except Barristers and other businesses with no employees, how to value work in progress.