This event is for both Loyalty Program and Finance/ Accounting Management, since IFRIC 13 affects points value and financial statements. All parties interested in loyalty-related issues are also invited to join.
The bulk of the IFRS standards that will affect loyalty programs are contained in the new IFRIC 13 Customer Loyalty Programs that became mandatory for annual reporting periods beginning on or after 1 July 2008. This thirteenth interpretation was issued by the (IFRIC) International Financial Reporting Interpretation Committee on 28 June 2007.
The main directive of IFRIC 13 states that any operator of a loyalty program will need to recognize credits, points or miles that it awards to customers as part of a sales transaction as a separately identifiable component of revenue, which would be deferred at the date of the initial sale.
Loyalty managers need to be aware that Fair Valuation could lead to the development of parity valuation that will detrimentally affect lucrative loyalty partnerships. Mitigating currency parity valuations among multiple partners is one of several business-related issues that loyalty professionals will now have to contend with. |
