BIM74100 - Abolition of the cash basis: where enquiries may be worthwhile

This guidance relates to accounting periods before the issue by the Accounting Standards Board (ASB) of Urgent Issues Task Force (UITF) Abstract 40 in March 2005. UITF 40 applies for accounting periods ending on or after 22 June 2005. Further guidance is at BIM74200 onwards. See in particular Appendix 2 paragraph 1 in BIM74275 in relation to the ICAEW’s guidance TAX30/98 (see BIM74130).

Exercise care and judgement

There may of course be cases where an enquiry is justified, for example, where a business which has fee-earning employees is not including any work in progress at all, or where work in progress is included at some nominal figure which suggests that no attempt has been made to value it properly. You should exercise care and judgement in selecting cases for enquiry.