hi friends
 
i have a transaction in my company where goods sold and payment received in yr 2005  are now goods being bought back at a lower price. Sales team is insiting to treat it as a new purchase. I am little spectacle as to wheather it should be treated as a sales return or fresh purchase.
 
pls advise in the light of IAS how this should be treated. 
 
Best regards,

Sandeep


 

Dear Sandeep.

Please clarify the situation, why are the goods being bought back, are
these being bought back with the intention of re-selling it etc. I
think that the group would be able to answer correctly if we will have
the history of this transaction.

Regards

Muhammad Ali


yes they are bought back with the intention of re-selling
 

Best regards,

Sandeep


 

Daer Muhammad,

I think she said goods not assets does it different .

Regard .


Hi Sandeep

 

Without further information, it’s difficult to determine. My initial feel is that the sales staff is trying to get around with the sales return by doing this.

 

One of the key questions you must ask is: “Is it common for your company to buy the item back?”

 

Regards

Leslie