The question was whether I should count a discount offered from a supplier for an early cash payment as something against the purchase price of a group of commodity items. The answer is No.

Instead, according to Paper C1, it should be regarded as a financial transaction item, not a trading account item and therefore when calculating the profit for a period the discount is not deducted from the purchase price, making the profit smaller.

My problem is that I even hadn’t had any idea why a discount for buying in bulk was counted against the purchase price, but that for early cash payments were not. Anyway, what is a “trading account item”? And a financial transaction?

Maybe even before C1, I should do some other homework.