On Mon, 6 Feb 2012 06:41:52 -0500, "Mike Marlow"
wrote:

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.

Not in any state I'm aware of. The card, itself, has no value. It's
"commercial paper"; an IOU.

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.

Yes, it does give the company real money to use, but it has to carry that on
its books as a debt. It may be redeemed some day. I can see both sides of
this one.