BIM74120 - Abolition of the cash basis: how to respond to requests for approval of proposed valuation basis
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).
Question is essentially one of the correct application of GAAP
Rather than making any specific comment on a proposed basis it is preferable to:
- emphasise that the question is essentially one of the correct application of GAAP, and
- draw the taxpayer’s attention to any parts of published guidance (such as the December 1998 Tax Bulletin article) that appear to be of especial relevance.
