Insight ReportUS Retail’s Updated Gift Card Guidelines: Accounting for Breakage and Bankruptcy Coresight Research February 24, 2021 Reasons to ReadUS 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 Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for Other research you may be interested in: Three Data Points We’re Watching This Week, Week 24: Consumer Sentiment Improves: US vs. ChinaJuly 2025 US Retail Sales: Growth Accelerates to Second-Highest Rate YTD, Supported by Prime DayMixed Sentiment Trends Ahead of August 1 Tariffs; Plus, Luxury Shopping in Focus: US Consumer Survey InsightsEarnings Insights 1Q25, Week 4: Alibaba, Walmart and Others Report Sales Growth While Under Armour Reports Sales Decline—Infographic
