Future Performance Obligation: In contracts with customers, a business may owe an obligation to a customer to perform a duty in the future. This is an accounting phrase referring to such future obligations. When a cardholder prepays for a Card an obligation placed upon the instrument issuer to perform in the future. These Future Performance Obligations typically are booked as liabilities on the balance sheet of the instrument issuer. Overtime these liabilities may become stale or abandoned resulting in Unexercised Customer Rights and Breakage. Future Performance Obligations are subject to regulation by GAAP, IFRS, the SEC Guidance, and Unclaimed Property Statutes.
