Timing is very important when preparing the end of financial year return.Johnny is a lawyer with a small one (1) man legal firm. A client comes in for aninitial consultation about bringing an action for negligence. It is estimated thatthe total legal fees will be close to $15,000.
Required:
Explain the general principles that apply when deciding when income has beenderived. Your answer should explain the principles used in cash v accrualsaccounting and advise Johnny on which method is most appropriate for hislegal firm.
The answer must include an analysis of the pertinent sections of therelevant legislation, rulings and the relevant case law and give reasons

Answer rating: 100% (QA)

Suggestion to Johnny Cash accounting refers to the accounting which is based on receipt and payment ... View the full answer