Purchase Discounts
Code: 5115
👁 Views: 110
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Credit |
Definition
Discounts earned from suppliers on purchases
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 2
Inventories
US GAAP
ASC 330
Inventory
❓ Frequently Asked Questions
Q: What are purchase discounts?
A: Discounts obtained by the buyer from the supplier for early payment or bulk purchases, appearing as a contra-purchase account.