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Discounts

Forums › FIA Forums › FA2 Maintaining Financial Records Forums › Discounts

  • This topic has 2 replies, 2 voices, and was last updated 4 years ago by maximus07.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • June 10, 2021 at 6:30 am #624355
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    How to treat cash discount on purchases? I have understood cash discount on sales but confused in purchases?
    Like we will do variable consideration or record cash discount received only when payment is done?

    Question 2:
    Is trade discount shown on invoice?

    Question 3:
    As we have studied according to IFRS-15, variable consideration is done by supplier on past experience of customer of either availing discount or not? My question is that sales invoices is on the assumptions of the supplier of it is only net of trade discount and the supplier records the sales according to variable consideration in his accounts only?

    June 10, 2021 at 5:07 pm #624461
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    Q1 and Q3 :I thought this were answered in my last reply here:

    https://opentuition.com/topic/discounts-13/

    The purchase invoice is recorded using the amount shown by the seller. Cash discounts are sorted out later where necessary spending on whether the discounts are actually awarded or not.

    Q2 it often is, but does not have to be. A trade discount is simply is simply a negotiated price.

    June 10, 2021 at 5:12 pm #624469
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Thank you sir. 🙂

  • Author
    Posts
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  • The topic ‘Discounts’ is closed to new replies.

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