Accounting for internal labour costs (US GAAP)

[Wojtek]

Hi,

I was wondering if you could help me out with one problem I came across today. One company will be preparing financial statement in January using internal labour resources within their standard working time. However, they want to accrue for those costs still in December as they claim that because financial statement relate to this fiscal year the costs of their preparation should be accrued for in the same period.

Any chance you could confirm that they are in fact wrong and that these costs should be expensed as incurred in January?

Thanks!