Good day!
Trade discounts are affecting the gross profit. But settlement discounts are shown below the gross profit and so is not used to arrive at the gross profit.
Is that correct?
If so, when the term discounts received are written, does that mean settlement discounts?
ACCA Forums
FAInclusion of discounts in the gross profit
For the first part of your question. You are correct. I would think the second part is also correct unless further information or context contradicts the assumption.
Hope this helps.
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