ACCOUNTING FEATURES OF THE SALE OF PRODUCTS WITH THE RIGHT OF RETURN ACCORDING TO THE REQUIREMENTS OF THE IFRS 15

Abstract

Returning goods in commercial organizations is one of the most common deals, the reasons for which are different։ product malfunction, defects, inconsistency with the range specified in the contract, etc. However, the return of the goods may not take place in cases of lack of consumer characteristics of the goods, presence of defects or inconsistency of the assortment, but in accordance with the clause stipulated in the contract, according to which the buyer has the right to return the unused part of the goods. However, the return of the goods may be implemented not in cases of lack of consumer characteristics of the goods, presence of defects or inconsistency of the assortment, but in accordance with the clause stipulated in the contract, according to which the buyer has the right to return the unused part of the goods.
 Although the return of unused goods by the customer is not new in practice, the previous IAS 18 "Revenue" standard did not outline any accounting approach. While IFRS 15 “Revenue from Contracts with Buyers” standard offers a unique approach to accounting for each item of the contract, more specifically, it makes the accounting flexible and conforms to the terms of the contract, which, of course, only improves the accounting. Moreover, if the customer, according to the contract, has the right to return a part of the unused goods, therefore, there is a need to develop the mechanisms for the sale, write-off and return accounting of the goods under the conditions of return.
 This article presents the mechanisms of evaluation and accounting of products corresponding to contracts with the right of return, which need to be identified and developed at the theoretical and practical level for the preparation of financial statements.