Commentary

B2.608 Work in progress

Business tax
Business tax | Commentary

B2.608 Work in progress

Business tax | Commentary

B2.608 Work in progress

Work in progress is not clearly defined in the legislation, although some clarification is given in connection with the valuation of work in progress on the discontinuance of a profession or vocation1. In practice2 the term applies to the following uncompleted items:

  1.  

    •     manufactured products

  2.  

    •     contracts for services; and

  3.  

    •     construction contracts

Manufactured products include products which, although not yet complete, are capable of sale by the manufacturer and which have a 'net realisable value' (see B2.613). Until they are sold the manufacturer retains title to the materials incorporated in the products.

Contracts for uncompleted services relate

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