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I wanna know about cost and NRV if it’s given a trade discount do we need to reduce the inventory just for cost or both? I have a little confusion here some of the questions that I answer we need to reduce the trade discount for the cost only but other questions reduce the trade discount for NRV only
In terms of cost, if a trade discount is received then this is the relevant cost that should be recorded as inventory. In terms of net realisable value, that may be a bit more complicated. If a trade discount is expected to be taken, I would suggest this should be taken into consideration. However, I am more uncertain about this point. Hope this helps.
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