Defining Issues : Changing Landscape For Payments Received From Suppliers
- Topics:
- Revenue recognition
- Tags:
- Channel Management,
- Consensus,
- Finance,
- KPMG International,
- Marketing,
- Operational Accounting,
- Payment,
- Supplier
- Source:
- KPMG International
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Overview: A recently completed EITF Consensus will cause wholesalers and retailers to review their accounting for payments they receive from their suppliers and could significantly affect their accounting and business practices. Supplier payments include cash or its equivalent in the form, for example, of a credit that is applied to future purchases, as well as equity instruments issued to the reseller. Common examples of the transactions covered are volume rebates, slotting fees, trade promotions or allowances, and reimbursements of expenses, such as reimbursements for costs to promote the suppliers’ products (cooperative advertising arrangements). The Consensus applies to all entities that receive payments from suppliers.
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Format: PDF | Size: 138KB | Date: Apr 2003 | Pages: 6
