Restaurant
Gift Card Breakage (Unredeemed Balance)
Recognizing revenue from gift card balances that are statistically unlikely to ever be redeemed.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Gift Card Liability | Liability (-) | 200.00 | - |
| Other Income (Gift Card Breakage) | Revenue (+) | - | 200.00 |
💡 Accountant's Note
Using historical data, if 5% of gift cards are never redeemed, you can recognize that portion as Other Income over time. This is called 'breakage' under IFRS 15.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.