Sir can you please help me how to treat discount on purchases.
Like we have IFRS-15 for Revenues.
Scenario 1:
Supplier thought we will not achieve cash discount according to past experience so he will send us invoice of $200 (no deduction of cash discount of $40). Whereas, we achieve the cash discount by paying in time so supplier will decrease sales by $40. On other hand, customer will record it as discount received of $40. Am I correct?
Scenario 2:
Supplier thought we will achieve cash discount according to past experience so he will send us invoice of $160 (after deducting cash discount of $40). However, we had not achieve so supplier will increase sales by 40, on the other hand what will we do as a customer.
Will we increase our purchases by 40?
Please help me with this. Thank You.
FIA Forums
Discounts
5y ago#11 - Yes
2 - Yes
See examples here:
https://www.accaglobal.com/in/en/student/exam-support-resources/fundamentals-exams-study-resources/f3/technical-articles/discounts.html
Yes sir. I gone through this article but it was not much helpful in sense of customers (or buying goods). It is helpful when we have discounts on supplying goods.
5y ago#3The purchaser has to initially record whatever invoice is received. Discounts are sorted out later if the invoiced amount turns out to have been incorrect.
Right sir.
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