Insight Report 11 minutes Premium

US Retail’s Updated Gift Card Guidelines: Accounting for Breakage and Bankruptcy

What's Inside

US 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.


What’s the Story?

Why It Matters

Gift Card Accounting: In Detail

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.