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Suppliers incentives and Rebates

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Suppliers incentives and Rebates

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
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  • September 27, 2015 at 8:35 pm #273915
    fngacca
    Member
    • Topics: 18
    • Replies: 3
    • ☆

    Dear Sir;
    If we receive rebates from suppliers on a certain value of purchases, can we present them as other income?

    September 28, 2015 at 9:19 am #273947
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23311
    • ☆☆☆☆☆

    What are the rebates for – how do they arise? Are they in the nature of a belated trade discount? I can’t see a situation where they would not be treated as a reduction of raw material cost so, no, I can’t see treatment as “sundry / other income” being appropriate

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