The Introduction of IFRIC 13 Customer Loyalty Programmes Had the Following

question 21

Multiple Choice

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

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Definitions:

ROI

Return on Investment, a financial ratio indicating the profitability of an investment relative to its cost.

Combined ROI

A metric that calculates the total return on investment from multiple investments or business units combined.

Residual Income

The amount of income that an individual or company has after all personal debts and expenses have been paid.

Investment Opportunity

A financial asset or venture that is expected to yield returns or profits in the future.