FMCG accounting

FMCG accounting guides

• FMCG accounting: the key IFRS issues3 minute readFMCG accounting explained: trade promotions and rebates that reduce revenue, slotting fees, returns, brands under IAS 38, advertising and distributors.
• Trade promotion spending3 minute readTrade promotion spending under IFRS 15: off-invoice discounts, scan-based promotions, feature and display fees, accruals for unclaimed deductions.
• Slotting and listing fees3 minute readSlotting and listing fees under IFRS 15: why shelf-space payments reduce revenue, when an upfront fee can be spread over a supply contract, and presentation.
• Volume rebates to retailers4 minute readVolume rebates to retailers under IFRS 15: retrospective tiers as variable consideration, the estimation method, catch-ups and refund liabilities.
• Returns and markdown allowances5 minute readReturns and markdown allowances under IFRS 15: rights of return, refund liabilities, the returned goods asset, markdown support and price protection.
• Brand valuation and impairment5 minute readBrand impairment under IAS 36: which brands are recognised, relief-from-royalty valuation, indefinite useful lives, the annual test, reversals and US GAAP.
• Distributors: principal or agent5 minute readFMCG distributors under IFRS 15: principal or agent, when control passes to a distributor, consignment stock, payments to distributors and channel stuffing.
• Short-dated and expiring stock5 minute readShort-dated and expiring stock under IAS 2: net realisable value by remaining shelf life, age-based policies, packaging, reversals, donations and US GAAP.
• Advertising and marketing costs4 minute readAdvertising and marketing costs under IAS 38: expensed when goods are available or services received, prepayments, catalogues, sponsorships and US GAAP.
• Free goods and samples5 minute readFree goods and samples under IFRS 15: allocating price to free cases, deferring revenue when they come later, bonus packs, material rights and samples.
• Co-manufacturing arrangements6 minute readCo-manufacturing arrangements under IFRS: embedded leases of dedicated lines under IFRS 16, who owns the inventory, minimum volumes and co-packer revenue.
• Incentives paid to retailers5 minute readIncentives paid to retailers under IFRS 15: upfront exclusivity payments, chillers and display equipment, retail media, growth bonuses and fair value.

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About these guides

Each guide starts from an accounting issue fmcg companies actually face and works through it with numbers from the industry. 12 of 12 planned guides are published; more are added with every batch.