Discounts Allowed
Code: 4113
👁 Views: 146
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Discounts granted to customers
Note: This account may be broken down into sub-ledgers as needed (e.g., customer/supplier/bank names or branches).
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IFRS 15
Revenue from Contracts with Customers
US GAAP
ASC 606
Revenue from Contracts with Customers
❓ Frequently Asked Questions
Q: What are discounts allowed?
A: Discounts granted to customers such as early payment discount (cash discount) or quantity discount, appearing as a contra-revenue account.