289-000 Calculation of profits and losses: income tax
Normal rules apply for calculating the trading (profession or business) profits of a partnership.
Profits are calculated by reference for a period of account (i.e. the accounting period of the partnership) and in accordance with generally accepted accounting principles (GAAP).
However, as an alternative to calculating profits in accordance with GAAP, partnerships can elect to use the cash basis of accounting provided all of the partners are individuals. Limited liability partnerships and partnerships with corporate partners are not eligible for the cash basis.