01 Nov 2015 1 min read
Overview
The Grant Thornton International IFRS team has published IFRS Viewpoint—Inventory discounts and rebates.
The IFRS Viewpoint series provides insights on applying IFRS in challenging situations. Each edition will focus on an area where the Standards have proved difficult to apply or lack guidance.
This edition considers how a purchaser accounts for discounts and rebates when buying inventory.
The issue
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 focuses on the purchaser’s accounting treatment for these different types of rebates and discounts along with some application examples.
Resource
The publication IFRS Viewpoint—Inventory discounts and rebates follows this Advisor alert.
Learn how to determine the transaction price under Step 3 of IFRS 15's five-step revenue recognition model, including key considerations for customer contracts and financial reporting.
Share-based payments have become increasingly popular over the years, with many entities using equity instruments or cash and other assets based on the value of equity instruments as a form of payment to directors, senior management, employees, and other suppliers of goods and services.
Share-based payment transactions with non-employees involve compensating parties other than employees, such as suppliers of goods and services.
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