IFRS 15 | Accounting For Loyalty Points

IFRS 15 | Accounting For Loyalty Points

In this informative video, we explore the principles of IFRS 15 and how it impacts the accounting treatment of loyalty points. IFRS 15, the International Financial Reporting Standard for Revenue from Contracts with Customers, has significant implications for businesses that offer loyalty programs. This video will help you understand the complexities and best practices of accounting for loyalty points under IFRS 15.

Key Points Covered:

  1. Introduction to IFRS 15: We begin with a brief overview of IFRS 15, outlining its core principles and objectives. It's designed to provide consistency and accuracy in revenue recognition across various industries.

  2. Loyalty Programs: The video delves into loyalty programs, explaining how they operate and why they are important for businesses. These programs often involve the issuance of loyalty points to customers as a reward for their continued patronage.

  3. Revenue Recognition: We explore how IFRS 15 affects the recognition of revenue from loyalty points. This includes discussing when revenue should be recognized, which may be at the point of sale, redemption, or other milestones.

  4. Measurement of Loyalty Points: The video addresses the measurement of loyalty points, emphasizing the importance of determining their fair value for accounting purposes. This fair value often represents the cost to provide the promised goods or services to customers.

  5. Practical Examples: Throughout the video, we provide practical examples and scenarios to illustrate how IFRS 15 is applied to various loyalty programs. Real-world cases help clarify the principles and guidelines.

Why It Matters:

Understanding the application of IFRS 15 to loyalty points is essential for businesses that operate loyalty programs. It ensures compliance with international accounting standards, transparency in financial reporting, and consistency in revenue recognition.


By the end of this video, you'll have a clear understanding of how IFRS 15 impacts the accounting for loyalty points. Whether you're an accountant, business owner, or financial analyst, this knowledge will empower you to navigate the complexities of revenue recognition in loyalty programs successfully.

Join us as we demystify IFRS 15 and its application to loyalty points. Watch the full video to gain the insights you need to make informed financial decisions and ensure your financial reporting aligns with international standards.

Feel free to adapt and personalize this overview to match the specific content and style of your video on accounting for loyalty points under IFRS 15.

 Course Director
The Financeer
 Last Update
 Completion Time
23 minutes
Members 3
IFRS Accounting
    • Introduction
    • Example
    • Conclusion