Retail

Customer Loyalty Points (Revenue Deferral)

Allocating a portion of a sale's price to the loyalty points earned by the customer.

Account NameTypeDebit ($)Credit ($)
CashAsset (+)100.00-
Sales RevenueRevenue (+)-95.00
Contract Liability (Loyalty Points)Liability (+)-5.00

💡 Accountant's Note

Under IFRS 15, you cannot recognize the full $100 as revenue if the points have a value. You must 'defer' the portion representing the points until they are redeemed or expire.

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