May i know what is meaning by ‘provision for sales rebate’ which is appear on other payables account ?i noticed there is significant amount. Is there pros & cons ?
May I know which company you are referring to ? I need to know what the company business is so that I can understand what the sales rebates are.
A provision is an amount set aside for use later on. In this case, the company is setting aside a sum for sales rebates that could be returned to customers.
On the side note, i can;t seem to find the sales rebates in their AR2016 annual report.
As mentioned above, the sum is set aside for possible rebates which may no happen also. In this case, it seem like a conservative approached by the management. As we do not know what contractual agreement NTPM did with the customers, hence the possible cons may be that the amount of provision may be underestimated.
Please login or Register to submit your answer