Our IFRS Viewpoint series provides insights on applying IFRS Accounting Standards in challenging situations.
Contents
Each issue will focus on an area where the IFRS Accounting Standards have proved difficult to apply or lack guidance. This issue considers how a purchaser accounts for discounts and rebates when buying inventory.
Discounts and rebates can be offered to purchasers in a number of ways, for example trade discounts, settlement discounts, volume-based rebates and other rebates. Accounting for these reductions will vary depending on the type of arrangement.
This IFRS Viewpoint provides our views on the purchaser’s accounting treatment for the different types of rebate and discount, along with some application examples.
