Amazon Gift Cards - Money for Nothing?

terra_ferma

IMacks wrote: »

This was my first time posting to this forum.
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Anyway, thanks for the robust discussion and your helpful suggestions, it has been an interesting learning experience for a newbie.

I like your measured response, well done for replying with a well-written, polite and intelligent post
unfortunately all too often people who have a genuine query and ask pertinent questions are treated quite badly on these boards, as if they were cheating, lying etc etc
Incidentally, there's nothing wrong with criticising Amazon or any other large company, I'm sure they can take it

StretchedElf

mjm3346 wrote: »

They are a potential liability on the books until redeemed or expired.

I still don't see how that's a disadvantage as they are not losing out in any way. There is no detriment.

mjm3346

StretchedElf wrote: »

I still don't see how that's a disadvantage as they are not losing out in any way. There is no detriment.

It is an accounting matter and the potential liability would simply keep increasing if the lost/unredeemed vouchers were not expired at some point.
As a voucher expires it changes from a liability to profit.
After 4 years a very small company that has just £25,000 worth of vouchers expire each year would have an extra £100,000 profit compared to a £100,000 liability if the vouchers had no expiry date.

System

Accountants don't like open-ended (datewise) liabilities it gives them nightmares