• IFRIC D24 issued 17 January 2008. Click for Press Release (PDF 49k).
  • Comment deadline 25 April 2008
  • The draft Interpretation is available publicly on the IASB's Website during the comment period.
  • 29 January 2009: IFRIC Interpretation 18 Transfers of Assets from Customers effective for transfers received on or after 1 July 2009. Click for Press Release (PDF 61k).

Deloitte Letter of Comment on this Draft Interpretation

IFRIC Agenda Project Page

Important: IFRIC D24 resulted in the final IFRIC Interpretation 18, issued 29 January 2009. The information on this page reflects the IFRIC's discussions during the development of the final interpretation, including tentative decisions that were changed along the way. We have retained this page for historical purposes only.

Summary of IFRIC D24

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 which it must use to acquire or construct the asset that will provide access.

IFRIC D24 addresses a number of areas where practice is diverse. It clarifies in particular:

  • whether a customer contribution should be recognised as an asset and, if so, whether it should be initially recognised at cost or fair value;
  • whether an agreement to provide ongoing services using a contributed asset contains a lease;
  • how to account for the credit that arises from the recognition of a customer contribution at fair value;
  • how to account for a cash contribution.

IFRIC D24 proposes the following accounting for the receipt of customer contributions:

  • All access providers 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.

Correction list for hyphenation

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