The introduction of IFRIC 13 Customer Loyalty Programmes had the following impact on revenue recognition policies for entities in the airline industry:
A) no impact
B) reduced the amount of revenue able to be recognised
C) increased the amount of revenue able to be recognised
D) changed the timing of the recognition of revenue

Question

Quizplus · Accepted Answer

IFRIC 13 introduced guidelines for the recognition of revenue from customer loyalty programmes, and required airline companies to adjust their revenue recognition policies accordingly. This change affected the timing of revenue recognition, as companies were now required to defer a portion of their revenue until customers had earned and redeemed their loyalty rewards. Therefore, the best choice is D, which states that the introduction of IFRIC 13 changed the timing of revenue recognition.

The Introduction of IFRIC 13 Customer Loyalty Programmes Had the Following