Taxation on the drawing board
Series: Architects' Journal ; 219(13) 1 April 2004, 46(1)Publication details: 2004Subject(s): Summary: Looks at recent changes to the way in which professional practices account for revenue, highlighting that professionals will have to pay tax on work for which they have yet to bill. Comments that firms will have to include profit on work done, including equity partners' time, at the balance sheet date. Previously, equity partner time was recognised in the accounts only after the bill for the work had been delivered to the client. The new ruling could leave firms significantly out of pocket. Professional firms await a definitive interpretation of the new regulations from accountancy bodies, but it is unlikely they will be able to spread the liability over a number of years. Suggests that firms seek guidance from accountancy professionals and spend time reviewing their billing and cash collection procedures.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | ABS67776 (Browse shelf(Opens below)) | 1 | Available | 126003-1001 |
Looks at recent changes to the way in which professional practices account for revenue, highlighting that professionals will have to pay tax on work for which they have yet to bill. Comments that firms will have to include profit on work done, including equity partners' time, at the balance sheet date. Previously, equity partner time was recognised in the accounts only after the bill for the work had been delivered to the client. The new ruling could leave firms significantly out of pocket. Professional firms await a definitive interpretation of the new regulations from accountancy bodies, but it is unlikely they will be able to spread the liability over a number of years. Suggests that firms seek guidance from accountancy professionals and spend time reviewing their billing and cash collection procedures.