The Grant Thornton International IFRS team has published IFRS Viewpoint—Inventory discounts and rebates.

The IFRS Viewpoint series provides insights on applying IFRS in challenging situations. Each edition will focus on an area where the Standards have proved difficult to apply or lack guidance.

This edition considers how a purchaser accounts for discounts and rebates when buying inventory.

The issue

Discounts and rebates can be offered to purchasers in a number of ways, for example trade discounts, settlement discounts, volume-based rebates and other rebates. Accounting for these reductions will vary depending on the type of arrangement. This IFRS Viewpoint focuses on the purchaser’s accounting treatment for these different types of rebates and discounts along with some application examples.


The publication IFRS Viewpoint—Inventory discounts and rebates follows this Advisor alert.




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