Study Regarding Accounting Treatment of Commercial and Financial Discounts

Author:Cristian ILIESCU, Silviu MANOLESCU

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Keywords:commercial discount, commercial reductions, nominal amount, fair value, consideration received/receivable, financial expenses/revenues

Abstract:
The article presents a study realized on a sample of financial statements. An analysis of relevant examples of interpretation and presentation in financial reporting of the commercial and financial discounts was made. The accounting treatment of these types of discounts is disscussed taking into account the differences between the Romanian accounting and reporting framework (OMFP 1752/2005) and the International Financial Reporting Standards (IFRS).The study presents comparatively the accounting treatments in compliance with both reporting frameworks. The solution proposed by the article concerns the modification of Romanian accounting regulations in order to include more adecquate definitions of commercial and financial discounts, as well as harmonization with international accounting regulations.

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