Accounting for Free Sample Distribution | Promotional Expenditure Under Ind AS Framework
- News|Blog|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 21 November, 2024
Latest from Taxmann
This case study examines the accounting treatment for the distribution of free samples by a company under the Indian Accounting Standards (Ind AS) framework. It focuses on how the expenditure incurred for distributing the free samples should be recognized in the financial statements, in line with the provisions of Ind AS 38 and Ind AS 115. The analysis delves into whether such marketing expenditures should be treated as an expense or capitalized, considering the nature of the transaction and the absence of revenue generation or performance obligations.
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
CA | CS | CMA
