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IFRIC 13 - Customer Loyalty Programmes


The draft Interpretation addresses accounting by entities that grant their customers 'points', 'air miles' or other award credits when the customers buy goods or services. Specifically, it addresses how such entities should recognise and measure their obligations to provide free or discounted goods or services if and when the customers redeem the award credits.

The draft Interpretation proposes that entities should allocate some of the proceeds of the first sale to the award credits and defer recognition of this amount of revenue until they have fulfilled their obligations to supply the free or discounted goods or services.

EFRAG issued its comment letter in response to the Exposure Draft in November 2006 and submitted its endorsement advice to the European Commission in May 2008.

IFRIC 13 was replaced by IFRS 15 Revenue from Contracts with Customers.   

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