Hi,
As part of our business, we have a Training Center that offers various technical training courses and programs. The training fees for local citizens are 100% exempt by management policy. Those represent more than 50% of the operating revenue of the center.
Training discounts have been recorded against Training Revenue as the accounting principles stipulate, however, the finance management is trying to find a way to avoid overstating the Center’s revenues and expenses by not recording the discounts and therefore the revenue from local citizens.
Is there a professional principle or article that allows such action?
As part of our business, we have a Training Center that offers various technical training courses and programs. The training fees for local citizens are 100% exempt by management policy. Those represent more than 50% of the operating revenue of the center.
Training discounts have been recorded against Training Revenue as the accounting principles stipulate, however, the finance management is trying to find a way to avoid overstating the Center’s revenues and expenses by not recording the discounts and therefore the revenue from local citizens.
Is there a professional principle or article that allows such action?