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EFRAG issued its draft comment letter on D24 Customer Contributions. EFRAG supports the IFRIC in its efforts to provide interpretive guidance on the area of customer contributions. Furthermore, based on EFRAG's understanding of D24, it supports the accounting solution suggested, subject to certain provisos and exceptions.
The main provisos and exceptions are that:
- EFRAG believes that the way the IFRIC has approached the issues makes the rationale much more complex than it needs to be as EFRAG believes that the question surrounds deferred revenue and advanced payments. Therefore EFRAG thinks draft Interpretation would benefit significantly, if this was clearly stated in the consensus and basis for conclusion and if the analysis would start from an IAS 18 perspective.
- EFRAG is concerned that the wording in the consensus seems to assume that the access provider accepts an ongoing obligation to provide access in return for the contribution, which it believes is only one of the many possible scenarios.
Deadline for comments is
EFRAG draft comment letter Final Clean