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Deferred Revenue | 12 Months Ended
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Dec. 31, 2018
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Deferred Revenue |
23. | Deferred Revenue
The Company’s subsidiaries have recognized the following deferred revenue:
|  | 12/31/2018 |  |  | 12/31/2017 |
‘am/pm’ and Jet Oil franchising upfront fee (a) |  |  | 18,668 |  |  |  | 19,537 |
Loyalty program “Km de Vantagens” (b) |  |  | 18,465 |  |  |  | 9,134 |
Loyalty program “Clube Extrafarma”(b) |  |  | 1,289 |  |  |  | 2,638 |
|  |  | 38,422 |  |  |  | 31,309 |
Current |  |  | 26,572 |  |  |  | 18,413 |
Non-current |  |  | 11,850 |  |  |  | 12,896 |
a. Franchising Upfront Fee am/pm is the convenience stores chain of the Ipiranga service stations. Ipiranga ended 2018 with 2,493 stores (2,414 in 2017). Jet Oil is Ipiranga’s lubricant-changing and automotive service specialized network. Ipiranga ended 2018 with 1,772 stores (1,735 stores as of December 31, 2017). b. Loyalty Programs Subsidiary Ipiranga has a loyalty program called Km de Vantagens (www.kmdevantagens.com.br) under which registered customers are rewarded with points when they buy products at Ipiranga service stations or at its partners. The customers may exchange these points, during the period of one year, for discounts on products and services offered by Ipiranga and its partners. Points received by Ipiranga’s customers that may be used with the partner Multiplus Fidelidade and for discounts of fuel in Ipiranga’s website (www.postoipiranganaweb.com.br) and recognized as a reduction of revenue from sales and services. Subsidiary Extrafarma has a loyalty program called Clube Extrafarma (www.clubeextrafarma.com.br) under which registered customers are rewarded with points when they buy products at its drugstore chain. The customers may exchange these points, during the period of six months, for discounts in products at its drugstore chain, recharge credit on a mobile phone, and prizes offered by partners Multiplus Fidelidade and Ipiranga, through Km de Vantagens. Points received by Extrafarma’s customers are recognized as a reduction of revenue from sales and services. Deferred revenue is estimated based on the fair value of the points granted, considering the value of the prizes and the expected redemption of these points.

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- Definition The entity grants customers award credit as incentive provided to buy certain goods or services. The entity allocates some of the consideration received or receivable from the sales transaction to the award credits, deferring the recognition of revenue. + References No definition available. + Details
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- Definition Text block [abstract] + References No definition available. + Details
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