Treatment one buy one get free under IFRS15

[Pinko]

A supermarket offer buy one and get one free as discount ( Such as one dish price is $100 and offer another dish $100 as for free) What shall we account this treatment under IFRS 15?
The journal entry is as follow and is that correct?
Bank or Accounts receivables (Balance Sheet)– DR-100
Discounts or Cost of sales (Profit and Loss) - DR -100
Sales (Profit and Loss)-CR-200

[Marek Muc]

no, DR cash 100 / CR revenue 100 , the supermarket simply sold two items for 100 in total

in IFRS 15 terms, these two items are two performance obligations:

https://ifrscommunity.com/knowledge-bas ... bligations

[Pinko]

How do you treat the inventory?
Because the items 2 dishes gone from the inventory, in that case, the Journal entry is as follows? I am not sure.

Dr Cost of sale $200
Cr Inventory $200

[Marek Muc]

entries are correct, but the amount is most likely too high, you don't know how much the supermarket paid for these items

[Pinko]

That is very true and I do not disagree.

[JRSB]

Subject to that, perhaps the existence of the 'buy one get one free' could mean an impairment to inventory due to reduction of the NRV. However such offers I suspect are only for limited quantity, in supermarket terms.

[Pinko]

Impairment???I did not think so.
I thought simply cost of sale/inventory is lower than the sale price because of margin.

[Marek Muc]

But 'buy one get one free' effectively means a 50% discount on both items, so JRSB's point is valid