Sandbagging - What is it and has it been stopped?

I've been mentioned the term sandbagging and told companies used to be rife of companies having 'exceptional delays' and profit falling therefore over 2 accounting periods.

Eg: A sells to B, Asset X for £5 million - falling in 2 accounting periods £2.5m each. Now it's agreed that £4.8m will be paid now in 1st period.

The company could apparently 'over reserve', and carry that excess over to the next accounting period before 'washing' it into the P & L.

Is this still the case has there been anything passed in terms of FRSs to stop this practice?

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richhuish
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