ACCT2331 Chapter Notes - Chapter 11,16,45: Sole Proprietorship, Coles Group, Kurt Nilsen
Document Summary
Income tax is payable on a taxpayer"s taxable income for an "income year: to determine in which income year ordinary income and general deductions are brought to account, it is necessary to examine the terms: Income of sole traders (firstenberg, dunn: the accruals basis (when income is earned): Income from trading business (j rowe & son) Flood: a presently existing liability must exist (nilsen development laboratories, there must be more than a mere impending, threatened, or expected liability (new. In determining when an outgoing is deductible there is a two-step approach (coles myer. Finance): step 1: determine whether a loss or outgoing has been incurred (jurisprudential principle, step 2: determine to which period the loss or outgoing is properly referable (matching principle) Small business entities and individuals: sbes and individuals that incur non-business expenditure are generally able to deduct pre- paid expenditure fully in the year it is incurred, provided the eligible service period:
