IAS 18 Extended Payments terms

Date recorded:


IFRIC members considered the accounting for extended payment terms, such as six-month’s interest-free credit.


Decision not to add

July 2004



IFRIC members were of the opinion that the accounting treatment was clear, and declined to add the issue to its agenda. IFRIC members agreed that IAS 39 Financial Instruments: Recognition and Measurement applies to the receivable in such circumstances, and that the effect of the time value of money should be reflected when this is material (IAS 39 paragraphs AG69-AG82). IFRIC members noted that the wording of IAS 18 Revenue paragraph 11 lacked clarity and needed to be improved.


IFRIC reference: IAS 18

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.