IFRScommunity.com

Hi everyone!
Please clarify the following issue for me:
If the company provides goods or services to it's employees for free or with a discount, should it be recognised as:
1) Extra payroll (or similar expense on employees) and revenue, or
2) Should be deducted from revenue (and expenses as well) as a material right to a customer.
Which option is acceptable? As for me, scenario 2 is more conservative. However, IAS 19 define that employees benefits could also be in non-cash form (as free o subsidised goods).
Thank you in advance!

are these the same goods as the company sells to 'regular' customers?

Yes, normal goods and services

There are no explicit requirements in this area. I would recognise revenue in the transaction price (i.e. discounted price) and recognise an employee benefit expense as the difference between price paid by employee and cost of goods/services provided (or nil if the company still makes a profit on the sale)