Technical factsheet 130 - UITF Abstract 40 - A Major Change in Profit Recognition and Increase in Tax Liabilities

UITF has changed significantly

As a result of the publication by the Accounting Standards Board (ASB) of an interpretation known as UITF 40 the accounting for service contracts will change significantly, increasing the reported profits and tax liabilities of many service providers such as solicitors, chartered surveyors, construction contractors and any other businesses providing services as opposed to goods. For ACCA members in practice not only will many clients be affected, but most accountancy practices will be impacted as well.