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Unformatted text preview: segregate it from sales. However, non-recurring gift card breakage from multiple periods is an unsustainable element of operations and meets the definition of a special item. At a minimum, companies offering gift cards should disclose their treatment of gift card transactions and breakage in the footnotes. Also, MD&A requirements likely oblige companies to disclose whether they offer such programs and, if so, the amounts from gift card proceeds and unredeemed balances, if material. Exhibit 1 Analysis of Gift Card Accounting (167 Companies) * Panel A: How Many Companies Provide Gift Card Disclosures? Information Availability Pct. (of 167) Companies analyzed No mention of gift cards Gift card sales immaterial...
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This note was uploaded on 02/24/2011 for the course ACCT 230 taught by Professor Kulper,m during the Spring '08 term at Santa Barbara City.
- Spring '08