IAS 2 Cash discounts
Date recorded:
Issue
The IFRIC considered whether it should provide guidance regarding how a purchaser of goods should account for cash discounts received.
Decision not to add
August 2002
Reason
The IFRIC agreed not to require publication of an Interpretation on this issue because paragraph 8 of (the pre-improvements) IAS 2 Inventories provides adequate guidance. Cash discounts received should be deducted from the cost of the goods purchased.
(Paragraph 8 was renumbered as paragraph 11 of IAS 2 as a result of the Improvements project)
IFRIC reference: IAS 2
