in IAS 18 - Revenue by
Dear concern
Help me to understand the following situation:

A company gives voucher to it's employees every year. By using this voucher, employees of the company can buy products of the company equivalent to the amount mentioned in the voucher.
Suppose company gives voucher of 2,400 to every employee. And by using this voucher employees can buy products of the company whose retail price is equivalent to 2,400 every year.

Should this amount be included in revenue?
If this amount is not to be recorded in revenue, what should be the proper journal entry?

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2 Answers

0 like 0 dislike
by Level 1 Member (1.5k points)
The appropriate entry should be:

Expenses - Dr.

Sales-             Cr

Cost of sales  Dr.

Stock in trade           Cr.
by
Thank you for your comment. But don't you think that by giving this journal entry, you are overstating your revenue. I was looking for a solution by which I can fairly state my revenue.
0 like 0 dislike
by
I think it should be recognized as revenue:

The double entries should be:

Dr: Cost of Sale
Cr: Inventory

Dr: Employee cost
Cr:  Revenue
by
i think it will recognise as revenue
Dr employee costs 2.4
Cr liab 2.4

when redeem
Dr liab
Cr revenue

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