Canada Recognizing portion on net profit earned

[golfer]

I get paid a % of the net profit form our company every month, can anyone tell me which month this should be recognized, the month it was earned or the following month. We use the accrual method. Our book keep keeps on insisting it should be recognized the following month.

 

[Fidget]

If it's a profit sharing thing, then it doesn't touch the current month's accounts which sounds like what your bookkeeper is saying.

 

[bklynboy]

I thought you accrue in the current month which is when the liability was generated? I know thats what we do at my firm and not wait until the following month unless its immaterial.

 

[Fidget]

You're right. Not sure why I was thinking otherwise.