At the last IFRIC meeting it was agreed to tentatively add to the agenda a project on accounting for customer-related intangible assets with regard to the contractual/non-contractual notion. This session aimed to identify a scope for a possible interpretation.

The staff began to talk the IFRIC through the agenda paper. The staff highlighted that the issue arises in practice when determining the meaning of 'non-contractual' customer relationship and the link to contractual customer relationship.

The IFRIC discussed at length the question what would be subsumed under both notions and whether the approach taken in IFRS 3 (Revised) – ie, separating from goodwill any non-contractual customer relationship that is separable).

The IFRIC finally agreed to refer this issue to the Board with a recommendation to remove the distinction in IFRS 3 Business Combinations (Revised) and IAS 38 Intangible Assets between contractual and non-contractual customer relationships.