The Emerging Issue Task Force issued an initial deliberation memo discussion prior to ASU 2016-04 related to the Extinguishments of Liabilities. The purpose of this memo was to assist the Task Force in determining how prepaid cards issued by a financial issuer should be accounted for and consider the question of if these liabilities met the definition of a financial liability. Card Compliant issued a comment letter on the on the income recognition of breakage for prepaid stored-value cards.
