On Friday we explained how Quindell sees the market for industrial deafness claims as a big source of growth. What that also highlights is how the group is now in very large part a listed law firm.
That characterisation matters not just because it is different to the way Quindell described itself in its trading statement on Monday, as “a leading provider of software, consultancy and technology enabled outsourcing”. It matters due to the way revenues and profits are accounted for at law firms.
The key aspect to understand here is something called “work in progress”. As a law firm works for a client on a case for which it expects at some point to get paid, when does it recognise those fees? Read more