Dear All,
We are an ecommerce start up company & we have the practice of giving cashbacks to our customer on the basis of sales, i have few questions w.r.t that as below.
How the accounting has to be done...At the time of issue of cashback do i need to book cashback as expense or at the time of issue i dont book any entry and only when the cashback is used by the customer while placing order i should book the expense.
Pls when you answer to this questions do quote the AS of which reference you have taken and the interpretation of that AS which supports the answer.
Awaiting quick revert
Thanks & Regards
Vishal Pokharna
CAclubindia
