IFRIC released for public comment a draft Interpretation for IFRIC D24 - Customer Contributions. IFRIC D24 clarifies, in particular, whether a customer contribution should be recognised as an asset, 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, and how to account for a cash contribution.
IFRIC D24 will standardise practice and clarify the 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. The IFRIC proposes that its guidance be applied prospectively.
Deadline for comment is 25 April 2008.
About IFRIC D24
Press release
© IASB - International Accounting Standards Board
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