Advances to Suppliers
Code: 1141
👁 Views: 42
Account Information
| Account Type | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Amounts paid in advance to suppliers before receiving goods or services
Sub-accounts
International Accounting Standards
IFRS
IAS 1
Presentation of Financial Statements
Prepayments to suppliers classified as current assets. Not financial instruments — no ECL required.
US GAAP
ASC 340
Other Assets and Deferred Costs
Same classification as prepaid assets. Impairment recognised if supplier unable to deliver.