Companies sometimes get special prices from suppliers if they undertake to purchase specified commodities from the supplier
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Companies sometimes get special prices from suppliers if they undertake to purchase specified commodities from the supplier over a designated future period. These supply arrangements do not have to be recorded as assets and liabilities. However, in future leases will give rise to recording of assets and liabilities. Discuss why the transactions are to be treated differently.
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Related Book For
Financial Accounting And Reporting
ISBN: 9780273778172
16th Edition
Authors: Mr Barry Elliott, Jamie Elliott
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