Banking
Credit Card Cashback / Rewards Points Accrual
Accruing the liability for cashback and rewards earned by cardholders on their spending.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Rewards Program Expense | Expense (+) | 5,000.00 | - |
| Loyalty Points / Cashback Liability | Liability (+) | - | 5,000.00 |
💡 Accountant's Note
Cashback and points programs are a cost of acquiring and retaining cardholders. The liability is recognized as spending occurs. Under IFRS 15, breakage on unredeemed points is released to income using historical rates.
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