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IFRIC 13 — Customer Loyalty Programmes

Note: IFRIC 13 will be superseded by IFRS 15 Revenue from Contracts with Customers as of 1 January 2018


  • IAS 18 Revenue
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets
  • IAS 38 Intangible Assets


7 September 2006 IFRIC D20 Customer Loyalty Programmes published Comment deadline 6 November 2006
28 June 2007 IFRIC 13 Customer Loyalty Programmes issued Effective for annual periods beginning on or after 1 January 2008
6 May 2010 Amended by Improvements to IFRSs (fair value of award credits) Effective for annual periods beginning on or after 1 January 2011
28 May 2014 Superseded by IFRS 15 Revenue from Contracts with Customers Effective for an entity's first annual IFRS financial statements for periods beginning on or after 1 January 2018

Summary of IFRIC 13

IFRIC 13 addresses accounting by entities that grant loyalty award credits (such as 'points' or travel miles) to customers who buy other goods or services. Specifically, it explains how such entities should account for their obligations to provide free or discounted goods or services ('awards') to customers who redeem award credits.

Key provisions

  • An entity that grants loyalty award credits shall allocate some of the proceeds of the initial sale to the award credits as a liability (its obligation to provide the awards). In effect, the award is accounted for as a separate component of the sale transaction.
  • The amount of proceeds allocated to the award credits is measured by reference to their fair value, that is, the amount for which the award credits could have been sold separately.
  • The entity shall recognise the deferred portion of the proceeds as revenue only when it has fulfilled its obligations. It may fulfil its obligations either by supplying the awards itself or by engaging (and paying) a third party to do so.
  • If at any time the expected costs of meeting the obligation exceed the consideration received, the entity has an onerous contract for which IAS 37 would require recognition of a liability.
  • If IFRIC 13 causes an entity to change its accounting policy for customer loyalty awards, IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors applies.

Effective date

IFRIC 13 is effective for annual periods beginning on or after 1 July 2008. Earlier application is permitted.

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.