2014 Sales paid in 2015 - which accounting period?

[TTI]

Hi,

I made some sales from my Ltd company to a customer that were invoiced in December 2014, due for payment in early 2015. My financial year is Jan-Dec. Are these sales counted in my 2014 accounts for profit calculation purposes?

 

[TTI]

My understanding from Revenue documents I have found indicate that for at least the first three years of trading it has to be on an 'accruals' basis, i.e. when the work was done and invoiced, not when it was paid.

 

[Joe_90]

Your accounts should be prepared on the accruals basis and therefore the invoices issued but unpaid will be included in sales and in debtors for the year in which they are raised.

This will always apply, no matter what year you are looking at.

 

[Lightning]

Your accounts should be prepared on the accruals basis and therefore the invoices issued but unpaid will be included in sales and in debtors for the year in which they are raised.

This will always apply, no matter what year you are looking at.

Exactly. Even if the invoices are not raised, if the sale took place in 2014, but no cash yet received, then it should be accrued for as a receivable / debtor in the 31 December 2014 accounts.

Are these sales counted in my 2014 accounts for profit calculation purposes?

Yes, it will effect the 2014 P&L calculation.

 

[WizardDr]

Is there not a judgment issue here - it needs to be that payment is virtually certain.
Also VAT could be on a cash accounting basis if you registered for it.