Prescripons Depot Limited (PDL)
Analysis Report
Junior Analyst
David Brown
Aer reviewing the Accounting policies of Prescription Depot Limited (PDL), it has come to my
a!ention that there are a few internal controls with their accounting policy and do not comply with IFRS.
PDL accepts vendor “cents o(” coupons. PDL then reports the sale at the discounted price and
reduces the amount of cost of goods owed to the vendor by the amount of the coupons redeemed.
When a coupon that is issued by the vendor and not the retailer the vendor agrees to reimburse the
retailer the full amount of the coupon. PDL in this case would set up an “Account Receivable” account to
record the amount owed to them by the vendor. For example $5000 coupons at $1 per are received, the
sale of these items has a retail value of $25,000:
Cash 20,000
