E-commerce

Customer Loyalty Points Earned — Revenue Deferral

Deferring a portion of revenue when a customer earns loyalty points on a purchase.

Account NameTypeDebit ($)Credit ($)
Cash / StripeAsset (+)99.00-
Sales RevenueRevenue (+)-94.05
Loyalty Points LiabilityLiability (+)-4.95

💡 Accountant's Note

Under IFRS 15, loyalty points that customers can redeem are a separate performance obligation. The estimated redemption value (5% of sale) is deferred as a liability until points are used or expire.

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Expert Analysis by Qusai Ahmad

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