change of stock is required to report if client is following cash basis method for accounting

Question

BlakeATO · Accepted Answer

In the first tax period after the change, you need to account for sales or purchases not previously accounted for. You still need to use the same income tax rules when valuing trading stock at the end of the year. Any increase in stock is assessable income, and any decrease is an allowable deduction. You can read about this on valuing trading stock on our website.

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