IFRIC proposal on accounting for customer contributions

  • IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

17 Jan 2008

The International Financial Reporting Interpretations Committee (IFRIC) has released for public comment a draft Interpretation, IFRIC D24 'Customer Contributions'.

Customer contributions are transactions in which an entity – the 'access provider' – receives an asset it uses to provide access to an ongoing supply of goods or services to a customer or customers. In some cases, the access provider receives cash that it must use to acquire or construct the asset that will provide access.


IFRIC D24 proposes:

  • All access providers (recipients of customer contributions) will be required to recognise contributed assets and revenue from providing access to a supply of goods or services over the period access is provided
  • Those access providers that have previously not recognised contributed assets will now recognise increased property, plant, and equipment and revenue
  • Those access providers that have previously recognised revenue immediately on the receipt of a contributed asset may now be required to recognise it over a longer period.


IFRIC D24 would be applied prospectively. The deadline for comments is 25 April 2008.

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