We have renegotiated minimum royalties and advertising allowances
on two other licensed tailored clothing programs.
The allowances are most often referred to as "co-op" or co-operative advertising allowances
, but, in reality, they comprise a group of possible allowances for a retailer's sales of a particular product, store fixtures, distribution, in lieu of warranty, damaged goods, and so on.
The new Competition Act will ban the fixing of minimum prices by suppliers, unfair discrimination in the grocery trade and the payment of advertising allowances
Beyond the merchandise mix, both chains were criticized by vendors for such business practices as chargebacks, advertising allowances
and numerous other "schemes.
MANY RETAILERS RECEIVE COOPERATIVE advertising allowances
that are volume-based.
Because most vendors offer cooperative advertising allowances
through their trade discount programs, and taxpayers generally view such payments no differently from other discounts, there have been disputes over the correct tax treatment of such amounts.
During the last two decades, provisions incorporated into supplier-retailer arrangements have moved well beyond free samples to include provisions for adjustments such as rebates, shelf-placement fees, and advertising allowances
at 7 (citing Guides for Advertising Allowances
and Other Merchandising Payments and Services, 16 C.
In the case of, for example, supplier rebates or advertising allowances
(both of which are tax-included), the application of GST, QST, and the maritime provincial tax would result in cascading taxes and be extremely complex to administer.
The improvement in gross profit margin for the third quarter of fiscal 2007 is primarily due to an increase in vendor advertising allowances
largely offsetting increased advertising expense incurred during the period.
46 Average number of shares outstanding - Basic 90,076,398 90,573,905 90,206,773 90,731,013 - Diluted 92,005,282 92,097,619 91,673,375 92,394,085 *Under Emerging Issues Task Force (EITF) Issue 02-16, "Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor", the company has classified vendor funded advertising allowances
as cost of merchandise sold for 2004.
Although this consensus provides guidance, in part, on the financial statement treatment of amounts received by a customer, including a reseller (collectively, reseller) for cooperative advertising arrangements, it introduces a potential conflict between the EITF's and the IRS'S treatments of cooperative advertising allowances