The IFRIC considered whether it should develop guidance as to how a utility company should account for customer contributions received.

Such contributions arise when a utility enters into an arrangement with a customer as part of which the customer has to provide either an infrastructure asset or cash to fund the acquisition and/or construction of such an asset in order to obtain connection to the utility's network. The contributed infrastructure asset is necessary for the utility entity to provide an ongoing utility service to the customer.

The IFRIC agreed that the issue met the IFRIC's Agenda Criteria. Members were concerned about how to limit the scope effectively, such that the IFRIC could reasonably expect to reach an answer. They requested the staff to consider the issue in a number of stages, which would assist it in reaching a consensus. These steps included identifying whether the transaction represented an exchange transaction (that is, a transaction at value); if so, does IFRIC 4 Determining Whether an Arrangement Contains a Lease apply to that transaction; determining whether the cost or fair value is the appropriate measurement base.

The IFRIC deferred a formal decision about whether to add the issue to its agenda. The staff will make an analysis of the issues involved together with possible alternative approaches at a subsequent meeting.