Original Research

The accounting treatment of single-company client loyalty programme transactions

Sophia Brink
Journal of Economic and Financial Sciences | Vol 6, No 3 | a259 | DOI: https://doi.org/10.4102/jef.v6i3.259 | © 2018 Sophia Brink | This work is licensed under CC Attribution 4.0
Submitted: 26 June 2018 | Published: 31 October 2013

About the author(s)

Sophia Brink, Department of Accounting, Stellenbosch University

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Client loyalty programmes have been prevalent in South Africa since the 1980s, but the popularity of these programmes has increased drastically over the past few years, with more than 100 suppliers in South Africa currently making use of them. On 1 July 2007 the IASB issued IFRIC 13 to give specific guidance to suppliers on the accounting treatment of client loyalty programme transactions. The IASB is currently compiling a new revenue standard. This single new revenue standard will replace six existing standards or interpretations, including IFRIC 13. A critical analysis of IFRIC 13 will assist the development of this new revenue standard. The main objective of the research was therefore to determine whether the guidance in IFRIC 13 regarding the accounting treatment of a single-company client loyalty programme transaction is consistent with other accounting standards and recent developments. The accounting treatment of each component of a client loyalty programme transaction with a change in estimate was considered. It was found that inconsistencies exist in the initial measurement of the fair value and how a change in accounting estimate is recognised.


client loyalty programmes; IFRIC 13; new revenue standard


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Crossref Citations

1. An IFRS Decision Heuristic—A Model for Accounting for Credit Card Rewards Programme Transactions
Sophia M. Brink, Gretha Steenkamp
Journal of Risk and Financial Management  vol: 16  issue: 3  first page: 169  year: 2023  
doi: 10.3390/jrfm16030169