[F11216BDWhen costs are taken to be incurredU.K.
(1)For the purposes of this Chapter costs are incurred when they are represented in the state of completion of the work in progress.
(2)Accordingly—
(a)payments in advance for work to be done are ignored until the work has been carried out, and
(b)deferred payments are recognised to the extent that the work is represented in the state of completion.
(3)The costs incurred on the relevant programme are taken to include an amount that has not been paid only if it is the subject of an unconditional obligation to pay.
(4)If an obligation is linked to income being earned from the relevant programme, no amount is to be brought into account in respect of the costs of the obligation unless an appropriate amount of income is or has been brought into account.]
Textual Amendments
F1Pt. 15A inserted (17.7.2013 for specified purposes, 19.7.2013 in so far as not already in force, and with effect in accordance with Sch. 16 para. 3 of the amending Act) by Finance Act 2013 (c. 29), Sch. 16 paras. 1, 2; S.I. 2013/1817, art. 2(1)