The article is about company’s income shaping by applying customer’s loyalty programs. As it reveals by the practice, companies widely applying loyalty programs, as an institutional form of communication for wide range of market participants. Loyalty programs, as a rule, contains instruments for increasing sales and selling additional products and services for existing customers. Performance of the company depends on its ability to generate enough inflows to payback operating costs and calculating profit. Our analysis shows that customer’s loyalty issues studying, as a rule, in the way to improve business competitiveness. Additionally, there is a necessity to negotiate all and any business decisions and also necessity of estimation its impact on company’s financial condition. The same time there are informational needs in the external analytics to proceed financial condition estimation and its dynamic. In that case company faces with the lack of transparency and objectivity of the information provided by financial reports. Company’s income shaping is a multifactorial process. The key value for the company’s financial reports belongs to income’s size and its dynamic. Withal, the size and dynamic of company’s income depends on the accepted accounting policy. The article studying issues about Russian companies accounting policy features linked to company’s income shaping by applying customer’s loyalty programs and its accounting and disclosure in the financial reports. In the current article we also paid attention to issues linked to the inflows information disclosure under International financial reports standards (IFRS). Defined, that customer’s policy development should be comprehensive, namely directed and to generate enough inflows, and defining its impact on financial reports and liabilities structure.

loyalty programs, business partner loyalty, financial communications, income, prepaid expense, contract liability, financial report indicators, international financial reports standards, management decision, pricing policy, probability

1. Berezka S.M. Loyalty programs: foreign and Russian experience. Vestnik Moskovskogo universiteta. Seriya 6: Ekonomika [Moscow State University Bulletin. Series 6: Economics]. 2016. no. 5. pp. 113–131. (in Russian).

2. Kuznetsova E.L., Getmanova A.V. Custoer loyalty as a sales efficiendy growth driver. Finansovaya analitika: problemy i resheniya [Financial Analytics: Science and Experience]. 2016. no. 4. pp. 38–52. (in Russian).

3. Bakhmatov S.A., Orkhokova N.O. Customers’ brand loyalty and its impact on competitiveness of the insurance company. Baikal Research Journal. 2014. no. 4. pp. 16. (in Russian).

4. Novikova N.G. Factors influencing the results of sales management in terms of competition in service sphere (as exemplified by retail trade services). Baikal Research Journal. 2017. vol. 8. no. 2. pp. 7. doi: 10.17150/2411–262.2017.8(2).19 (in Russian).

5. Kolesnikova T.V. Interrelation of financial solvency and competitiveness of the insurance company. Izvestiya Irkutskoy gosudarstvennoy ekonomicheskoy akademii (Baykalskiy gosudarstvennyy universitet ekonomiki i prava) [Izvestiya of Irkutsk State Economics Academy (Baikal State University of Economics and Law)]. 2015. vol. 6. no. 3. pp. 10. doi: 10.17150/2072–0904.2015.6(3).10 (in Russian).

6. O’Brien L., Jones C. Do Rewards Really Create Loyality? Harvard Business Review. 2015. pp. 75–83.

7. Bar-Gill O., Ben-Shahar O. Exit from Contract. Journal of Legal Analysis. 2014. vol. 6. no. 1. pp. 151–183.

8. Bar-Gill O., Ben-Shahar O. Regulatory Techniques in the Consumer Protection: A Critique of European Consumer Contract Law. Common Market Law Rev. 2013. no. 50. pp. 109–125.

9. Bar-Gill O. Seduction by Contract: Law, Economics and Psychology in Consumer Markets. Oxford, Oxford University Press, 2012.

10. Kislitsyna L.V., Suvorov N.S. Topical issues of the small business funding organizational process. Baikal Research Journal. 2016. vol. 7. no. 4. pp. 7–7. doi: 10.17150/2411–6262.2016.7(4).7 (in Russian).

11. Semakina G.A. Relationships with customers are the basis of the service company competitiveness. Biznes. Obrazovaniye. Pravo. Vestnik Volgogradskogo instituta biznesa [Business. Education. Right. Bulletin of Volgograd business Institute]. 2015. no. 2 (31). pp. 115–119. (in Russian).

12. Sogacheva O.V., Simonenko E.S. Use Of the marketing comunicationc and PR-management in the modern socio-economic conditions as the tool for evaiuation of the company competitiveness: Practical Aspects. Biznes. Obrazovaniye. Pravo. Vestnik Volgogradskogo instituta biznesa [Business. Education. Right. Bulletin of Volgograd business Institute]. 2014. no. 2 (27). рр. 164–170. (in Russian).

13. Berezka S.M. Implementation and development prospects of the customer loyalty Programs in Russia and foreign countries. Teoriya i praktika obshchestvennogo razvitiya [Theopy and Practice of Social Development]. 2014. no. 1. pp. 427–430. (in Russian).

14. Arakelovа I.V. Reasons and conditions of institutionalization of partner relations in small-scale and microbusiness. Izvestiya VGPU [Izvestiya VSPU]. 2013. no. 3 (78). pp. 88–91. (in Russian).

15. Arakelovа I.V. Institutional aspects of formation of loyalty of business partners in the B2B market. Biznes. Obrazovaniye. Pravo. Vestnik Volgogradskogo instituta biznesa [Business. Education. Right. Bulletin of Volgograd business Institute]. 2013. no. 3 (24). рр. 198–203. (in Russian).

16. Sorokina E.M. Opportunities and challenges for implementation of International Financial Reporting Standards in Russia. Izvestiya Irkutskoi gosudarstvennoi ekonomicheskoi akademii [Bulletin of Irkutsk State Economics Academy]. 2016. vol. 26. no. 3. pp. 469–477. doi: 10.17150/1993–3541.2016.26(3).469–477 (in Russian).

17. Druzhilovskaya T.Y., Druzhilovskaya E.S. IFRS 15: new requirements and their correlation with the Russian accounting standards. Mezhdunarodnyye standarty ucheta i otchetnosti [International Standards of Accounting and Reporting]. 2014. no. 15 (357). pp. 22–36. (in Russian).

18. Gasanava E.G., Loyalty Programs. The Experience of Foreign Countries. Uchet. Analiz. Audit. [Accounting. Analysis. Auditin]. 2014. no. 2. pp. 87–92. (in Russian).

19. Slobodnyak I.A. Theoretical bases of forming indices of internal management accounting statement. Izvestiya Irkutskoi gosudarstvennoi ekonomicheskoi akademii [Bulletin of Irkutsk State Economics Academy]. 2011. no. 3 (77). pp. 36–39. (in Russian).

20. Capizzi M., Ferguson R., Salmon W.J. Loyalty Trends for the 21st Century. Journal of Targeting, Measurement and Analysis for Marketing. 2014. vol. 1. no. 3. pp. 199–212.