Accounting for Gift Cards скачать в хорошем качестве

Accounting for Gift Cards

Accounting for gift cards presents two issues: (1) when to recognize revenue and (2) what to do if some portion of the gift card is never redeemed (breakage). When a company sells a gift card, it cannot recognize revenue. Instead, the company records a liability. This is because the company may be obligated to provide a good or service at a future date to the holder of the gift card. When the holder of the gift card later uses the gift card to purchase good or services, the company can reduce its gift card liability account and recognize revenue for the portion of the gift card balance that was used. What happens to the unused portion of the gift card? This depends on the state's escheatment laws. In some states, unclaimed property (such as the unused portion of a gift card) escheats (is transferred) to the state government. Thus, if $5 on a gift card goes unused, then the $5 will be transferred to the state (with no revenue being recognized) if the state has escheatment laws. If the state has no such laws, then the company would recognize the remaining $5 as revenue.— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *  / prof_mclaughlin   — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST Apple Podcasts: https://podcasts.apple.com/us/podcast... Spotify: https://open.spotify.com/show/4WaNTqV... Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK   / prof_mclaughlin   — ACCESS INDEX OF VIDEOS https://www.edspira.com/index — CONNECT WITH EDSPIRA Facebook:   / edspira   Instagram:   / edspiradotcom   LinkedIn:   / edspira   — CONNECT WITH MICHAEL Twitter:   / prof_mclaughlin   LinkedIn:   / prof-michael-mclaughlin   — ABOUT EDSPIRA AND ITS CREATOR https://www.edspira.com/about/ https://michaelmclaughlin.com