Financial Accounting Blog

Monday, January 26, 2004

Store Gift Cards: This article at reports on how the growing use of store gift cards is making it harder for retailers to accurately report their Christmas sales.
While gift cards still represent a sale for retailers, companies aren't able to register those sales until the gift cards are spent by their recipients. Since that often doesn't happen until weeks after the end of the holiday season, the effect is that recognized holiday sales are depressed.