Coupons under ifrs, what is a material right?
Hi Silvia, Can you please advise on the following: And, how do you account for them? Contribution for leaflet printing costs is clearly refunding some selling expenses and therefore it should be treated as income, not as cost of inventories.
By showing the material right separately, the readers of your financial statements know that at the end of 20X1, you have some liability there — to provide discounts on future purchases resulting from loyalty points. If a government including governmental agencies donated you some inventories, then you should apply the standard IAS 20 Accounting for Government grants and Disclosure of government assistance.
They should not be treated as finance income, but again, they reduce the cost of inventories.