In this column, I will pick up department store commission, which is one of the most frequent topics for adjustment.

IFRS regards department commission as SGA. For example, if sales 100 and commission is 10, journal records 100 for sales and 10 for SGA. On the other hand, for JGAAP, it records as Net, so 100 – 10 = 90 is recorded as sales.

However, from the point of tax payment, this does not have impact at all. The reason is that this is just classification problem either gross margin or operating profit. In other words, no impact for net profit and taxable income.