The accounting treatment of credit card rewards programmes: a South African perspective (Part 1)

Credit card rewards programmes are a common phenomenon in the South African market. On 1 July 2007 the International Accounting Standards Board (IASB) issued IFRIC 13 Customer Loyalty Programmes to give specific guidance to suppliers on the accounting treatment of customer loyalty programme transactions. Although credit card rewards programmes are specifically included in the scope of this Interpretation, in practice not all credit card rewards programmes currently account for award credits under the revenue deferral model (IFRIC 13). During May 2014 the IASB and the United States Financial Accounting Standards Board (FASB) published IFRS 15 Revenue from Contracts with Customers intended to replace six existing Standards and Interpretations, including IFRIC 13. Currently there is uncertainty whether or not a credit card rewards programme transaction falls within the scope of IFRS 15. Despite concerns raised the Boards decided against providing any additional guidance to credit card rewards programmes and indicated that they leave it up to management

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The accounting treatment of credit card rewards programmes: a South African perspective (Part 2)

Journal of Economic and Financial Sciences ◽

10.4102/jef.v10i2.14 ◽

2017 ◽

Vol 10 (2) ◽

pp. 206-234

Author(s):

Sophia Brink

Keyword(s):

South African ◽

Customer Loyalty ◽

Credit Card ◽

The United States ◽

Financial Accounting ◽

Financial Accounting Standards Board ◽

Proposed Model ◽

African Perspective ◽

Current Guidance ◽

Loyalty Programme

Most credit card issuers offer their card holders participation in a customer loyalty programme. On 1 July 2007 the IASB issued IFRIC 13 Customer Loyalty Programmes to give specific guidance to suppliers on the accounting treatment of customer loyalty programme transactions. Despite the fact that credit card rewards programmes are specifically included in the scope of this Interpretation, in practice not all credit card rewards programmes currently account for award credits under the revenue deferral model (IFRIC 13). These divergent practices make one question the relevance of the current guidance provided in IFRIC 13 to credit card rewards programmes; otherwise what is the reason behind credit card rewards programmes accounting for these transactions differently? During May 2014 the IASB and the United States Financial Accounting Standards Board (FASB), published IFRS 15 Revenue from Contracts with Customers intended to replace six existing Standards and Interpretations, including IFRIC 13. The aim of IFRS 15 is to streamline accounting for revenue across all industries and to correct inconsistencies in existing Standards and practices. Credit card rewards programme respondents raised many queries and uncertainties based on the proposed model but despite these concerns the Boards decided against providing any additional guidance to credit card rewards programmes. They indicated that they leave it up to management

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Editorial

Journal of Economic and Financial Sciences ◽

10.4102/jef.v10i2.12 ◽

2017 ◽

Vol 10 (2) ◽

pp. 191-193

Author(s):

Gideon Els

Keyword(s):

United States ◽

Credit Card ◽

Accounting Standards ◽

The United States ◽

Financial Accounting ◽

Financial Accounting Standards Board

In the second part of her research, Sophia Brink again looks at the accounting treatment of credit card rewards programmes. In May 2014 the IASB and the United States Financial Accounting Standards Board (FASB), published IFRS 15

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THE EVOLUTION OF THE RELATIONSHIP BETWEEN THE US FINANCIAL ACCOUNTING STANDARDS BOARD AND THE INTERNATIONAL ACCOUNTING STANDARD SETTERS: 1973–2008

Accounting Historians Journal ◽

10.2308/0148-4184.39.1.1 ◽

2012 ◽

Vol 39 (1) ◽

pp. 1-51 ◽

Cited By ~ 12

Author(s):

Robert J. Kirsch

Keyword(s):

Accounting Standards ◽

Financial Accounting ◽

Working Relationships ◽

International Accounting ◽

International Accounting Standards ◽

Financial Accounting Standards Board ◽

Accounting Standard ◽

Staff Members ◽

The Us ◽

The Relationship

ABSTRACT Utilizing archival materials as well as personal interviews and correspondence with personnel of the Financial Accounting Standards Board (FASB) and International Accounting Standards Committee/Board (IASC/B), including former Board chairmen and staff members, this paper examines the development of the working relationships between the FASB and the IASC/B from their earliest interactions in 1973 through the transformation of the IASC into the IASB and the Convergence Program rooted in the 2002 Norwalk Agreement up to 2008.

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Accounting for leases – lessons from COVID-19

Pacific Accounting Review ◽

10.1108/par-09-2020-0186 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Alan Teixeira

Keyword(s):

Financial Reporting ◽

Design Methodology ◽

Accounting Standards ◽

Financial Accounting ◽

International Accounting Standards ◽

Reporting Standards ◽

Financial Accounting Standards Board ◽

Content Type ◽

Financial Reporting Standards ◽

Setting Process

Purpose The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) have given relief to lessees in response to the coronavirus (COVID-19) pandemic. However, it is not clear why any relief from the requirements in International Financial Reporting Standards (IFRS) or the Accounting Standards Codification (ASC) should be necessary. The purpose of this paper is to highlight weaknesses in how the IASB and FASB developed their leases Standards, and why those Standards are not robust enough to cope with a shock to the economic system. Design/methodology/approach The COVID-19 relief suspends some features of the leasing requirements rather than changing them. What if other economic or regulatory events cause the same circumstances to arise? Findings Have COVID-19 exposed weaknesses in the leasing standards that should have been avoided when they were developed or is COVID-19 the problem? Originality/value Analysis of actual board discussions and staff papers is unusual and provides insights into the standard-setting process.

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The Contrast Research of Presentation and Disclosure about other Comprehensive Income

Applied Mechanics and Materials ◽

10.4028/www.scientific.net/amm.687-691.5080 ◽

2014 ◽

Vol 687-691 ◽

pp. 5080-5084

Author(s):

Xing Wei

Keyword(s):

United States ◽

Accounting Standards ◽

The United States ◽

Financial Accounting ◽

International Accounting ◽

International Accounting Standards ◽

Comprehensive Income ◽

Other Comprehensive Income ◽

Income Reporting

This article compares and analyzes the distinguish between the accounting standards for enterprises in our country about other comprehensive income reporting and disclosure of financial accounting standards from the IAS (International Accounting Standards) and the FASB in the United States, through four aspects as the meaning of other comprehensive income, the concrete content and accounting, presentation and disclosure.

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A Perspective on the Joint IASB/FASB Exposure Draft on Accounting for Leases

Accounting Horizons ◽

10.2308/acch-50048 ◽

2011 ◽

Vol 25 (4) ◽

pp. 861-871 ◽

Cited By ~ 23

Author(s):

Yuri Biondi ◽

Robert J. Bloomfield ◽

Jonathan C. Glover ◽

Karim Jamal ◽

James A. Ohlson ◽

...

Keyword(s):

Balance Sheet ◽

Accounting Standards ◽

Financial Accounting ◽

International Accounting Standards ◽

Financial Accounting Standards Board ◽

Operating Leases ◽

Key Issues ◽

Definition Of ◽

The Impact ◽

Lease Accounting

SYNOPSIS The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) recently issued a joint exposure draft on accounting for leases. This exposure draft seeks to shift lease accounting from an “ownership” model to a “right-of-use” model. Under the current ownership model, leases can be reported on balance sheet (finance leases) if certain tests are met, or off balance sheet (operating leases) if those tests are not met. The new model seeks to report all leases on the balance sheet based on the present value of lease obligations without any bright line tests, and no sharp on or off the balance sheet classifications. We are sympathetic to the standard setters' concern that the current lease standard is being manipulated improperly by managers, resulting in large amounts of debt being reported off balance sheet. We provide a discussion of current lease accounting and the proposed exposure draft. We also comment on five key issues covered by the exposure draft: the definition of a lease, the initial measurement and eventual reassessment at fair values, the accounting for lessors, the impact of lease accounting on recognition and income measurement, and classification of lease accounting elements and their impact on accounting ratios. JEL Classifications: M40.

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Ontwikkelingen in het conceptual framework

Maandblad Voor Accountancy en Bedrijfseconomie ◽

10.5117/mab.87.21915 ◽

2013 ◽

Vol 87 (9) ◽

pp. 355-364

Author(s):

Dick Van Offeren ◽

Joop Witjes ◽

Tim Verdoes

Keyword(s):

Conceptual Framework ◽

Financial Reporting ◽

Accounting Standards ◽

Financial Statements ◽

Financial Accounting ◽

International Accounting ◽

International Accounting Standards ◽

Financial Accounting Standards Board ◽

Reporting Framework ◽

International Accounting Standards Board

De International Accounting Standards Board (IASB) heeft recent het conceptual framework-project als kernproject aangemerkt. Het oorspronkelijke Framework for the preparation and presentation of financial statements (framework 1989) was aan een fundamentele herziening toe. Samen met de Financial Accounting Standards Board (FASB) heeft de IASB de eerste fase van het Conceptual framework for financial reporting (framework 2010) voltooid. In deze eerste fase worden twee onderwerpen besproken. Dit zijn het doel van financiële verslaggeving en de kwalitatieve kenmerken van financiële verslaggeving. Wij bespreken deze twee onderwerpen en gaan in op de verschillen tussen het framework 2010 en het framework 1989. Wij benadrukken het verschil in toepassingsgebied van de twee frameworks. Het framework 2010 is gericht op het ruimere begrip financial reporting, financiële verslaggeving en het framework 1989 was beperkt tot financial statements, jaarrekeningen.

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Proposed Lease Accounting For Lessees

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v9i1.941 ◽

2011 ◽

Vol 9 (1) ◽

Cited By ~ 1

Author(s):

Stuart Shough

Keyword(s):

Accounting Standards ◽

Financial Accounting ◽

International Accounting ◽

International Accounting Standards ◽

Financial Accounting Standards Board ◽

Font Size ◽

Accounting Model ◽

Lease Accounting ◽

International Accounting Standards Board

On August 17, 2010, the Financial Accounting Standards Board and the International Accounting Standards Board jointly issued exposure drafts proposing a new accounting model for leases. This paper explains how a lessee would account for leases under this proposal.

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An Evaluation Of The Implementation Of Fair Value Accounting: Impact On Financial Reporting

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v9i1.934 ◽

2011 ◽

Vol 9 (1) ◽

Author(s):

Karen T. Cascini ◽

Alan DelFavero

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

Fair Value ◽

The United States ◽

Financial Accounting ◽

Financial Assets ◽

Financial Accounting Standards Board ◽

Continuous Change ◽

Fair Value Accounting ◽

The Cost

The accounting industry is in a state of continuous change.  In the United States, the historical cost principle has traditionally been the foundation of accounting.  Until recently, assets and liabilities have been required to be recorded at their acquisition prices, with the exception of designated financial assets and financial liabilities.  However, the Financial Accounting Standards Board (FASB) has now created accounting standards that are distant from the cost principle.  Statement of Financial Accounting Standards No. 157: Fair Value Measurements, issued in September 2006 (FAS157, now codified as ASC 820) and Statement of Financial Accounting Standards No. 159: The Fair Value Option for Financial Assets and Financial Liabilities, created in February 2007 (FAS159, now ASC 825-10-25), significantly increases the viability of fair value accounting. The purpose of this paper is to illustrate the benefits and pitfalls of fair value and the corresponding affects on various stakeholders.

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Impact Of IASB & FASB On Financial Statements

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v8i8.3160 ◽

2011 ◽

Vol 8 (8) ◽

Author(s):

Veronica Paz ◽

Thomas Griffin

Keyword(s):

Conceptual Framework ◽

Accounting Standards ◽

Financial Statements ◽

Financial Accounting ◽

International Accounting ◽

International Accounting Standards ◽

Financial Accounting Standards Board ◽

The Impact ◽

International Accounting Standards Board

The purpose of this research is to determine the impact of material differences in the conceptual framework of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) on the financial statements.

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