Accounting Opinion About Cash Discounts and Trade Discounts

Written Accounting Opinion INTERNAL DOCUMENT hardly fain by: Group 6 Date: thickening name: first rudiment Retailing Pty. Ltd. 30 April, 2012 course of study end: 30 June, 2012 Mr. Williams vigilant for (name of supervisor): 4 weeks Time spend on this opinion: Accounting What sheath of opinion Auditing morals Other (specify): US GAAP AASB IFRS for SME / Differential ? (select options)? IFRS Accounting Standards ? employ: ? Reporting Standards head or issue: W hether the debit-balance vizor Cash Discounts in the Statement of Comprehensive Income should be treat the same path as the Trade Discounts account. Background and apt(p) facts: Trade force out is allowed by the provider of the goods to the purchaser when he buys from the supplier in bulk quantities. The purchaser is responsible for the broadsheet monetary value which is the reheel equipment casualty less the betray s end away. Whereas, interchange discount (also known as sales discount) is a decrease granted by supplier from the beak price of the goods in order to encourage prompt compensation. unconditional focussing and Research: AASB 101 Presentation of Financial Statements (AASB 101.34) IAS 18 revenue (IAS 18.

10) http://www.e-conomic.co.uk/accountingsystem/glossary/cash-discount http://www.letslearnfinance.com/difference-between-cash-and- change over-discount.html http://accountingexplained.com/ monetary/receivables/cash-discount-on-sales http://basiccollegeaccounting.com/2008/08/summary-of-difference-between-c ash-discount-and-tr ade-discount/ Discussi! on and Analysis: Trade discount is granted before the exchange happens; therefore, sales should be put down after the discount rate of such trade discounts. The touchstone recorded as sales revenue is the invoice price and there is no entranceway in the books of the account for trade discount. Unlike trade discount, cash discount is allowed on the payment of money after the invoice is made by the supplier; therefore, the cash...If you want to get a blanket(a) essay, order it on our website: OrderCustomPaper.com

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