DIYbanter - View Single Post

Mike Marlow[_2_]

zzzzzzzzzz wrote:

1) Because they are a liability on the company. 2) It doesn't show
up as income until it's redeemed (see #1). 3) Because it's the law.

I assumed that the card itself constituted the value in exchange for the
money, such that revenue could be recognized at the point of sale.

They were purchased with cash. Regardless - they
were purchased. Should be worth face value forever in my opinion.

They do cost the company real money to keep on the books. I'm not
against them limiting that liability to some reasonable time.

Well, it also gives the company real money to use all of the while that the
card is out there unredeemed. But - like I said, it's just my opinion that
they should not be allowed to exprire.

--

-Mike-