If you think you know how to uniformly account for discounted gift card sales or the costs associated with all of your sales channels, think again.
According to new rules from US GAAP and IFRS, the nature of the discount is changing – some of your expenses could be considered a reduction in revenue. Further, the question of when to take the expense and who funds it (your corporate office? Franchisees?) are of central importance.
In-store sales are declining. New distribution channels—including eGift, retail distribution channels, and promotional incentives—are making up the difference (and then some). The amassed data from our 200+ gift card customers tells us how important accounting for these new channels has become.
Check out this on-demand webinar to learn about the new accounting rules. Plus, you’ll hear a real-life holiday paradox that has to do with a marketing team selling $3 million in gift cards to Costco during a past holiday season. Were they considered heroes or a goats by their executive team? The answer might surprise you. Watch “Accounting for Gift Card Growth Channels” now.