Insight Report 11 minutes PremiumUS Retail’s Updated Gift Card Guidelines: Accounting for Breakage and Bankruptcy Coresight Research February 24, 2021 What's InsideUS retailers witnessed a surge in gift cards sales in 2020. We discuss how US retailers account for gift card sales as well as unredeemed gift card balances under the Accounting Standards Codification (ASC) 606 update issued by the Financial Accounting Standards Board (FASB). We also cover retailers’ unused gift card liabilities, including Amazon, Target and Walmart, and how outstanding gift cards are managed in the event of retailer bankruptcies and liquidations. Click here to read our report on key trends impacting the US gifting market. CONTENTS What’s the Story? Why It Matters Gift Card Accounting: In Detail Accounting Entries for Sales and Redemption of Gift Cards Under FASB’s Updated Guidance Accounting Entries for Unredeemed Gift Cards Escheat Law ASC 606 Adoption Timeline Why Was the Overhaul of Financial Reporting Necessary? Gift Card Accounting by Leading US Retailers Retailers’ Liabilities: Bankruptcies and Liquidations What We Think Implications for Brands/Retailers This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: A Must-Read Guide to Shoptalk 2023: How To Maximize Your Time and Create Opportunities Across Five Retail ThemesUS Consumer Tracker: Conflicting Trends in Behavior, Plus an Early Look at Memorial Day PlansGenerative AI Latest: New Funding, Infrastructure and Applications, Plus Google’s Recent Product Launches and Tech PartnershipsE-Commerce Outlook: US Department Stores—Digital Slows as Consumers Shop in Stores