IFRS 3/IAS 38 — Customer-related intangible assets

Date recorded:

The IFRIC considered a request to add an item to its agenda to provide guidance on the circumstances in which a non-contractual customer relationship arises in a business combination.

The submission noted that IFRS 3 Business Combinations (Revised 2008) requires an acquirer to recognise the identifiable intangible assets of the acquiree separately from goodwill. An intangible asset is identifiable if it meets either the contractual-legal criterion or the separability criterion. Customer-related intangible assets might be either contractual or non-contractual. Contractual customer relationships are always recognised separately from goodwill as they meet the contractual-legal criterion. However, non-contractual customer relationships are recognised separately from goodwill only if they meet the separability criterion. Consequently, determining whether a relationship is contractual is critical to identifying and measuring both separately recognised customer relationship intangible assets and goodwill.

The IFRIC Coordinator recommended that this item be added to the agenda – not necessarily to develop an Interpretation but to explore whether IFRS 3 or IAS 38 need clarification or improvement. After a short discussion, the IFRIC agreed to this approach.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.