The Financial Accounting Standards Board, also known as FASB, issued an Accounting Standards Update 2014-09 regarding Revenue from Contracts with Customers. This amendment provided guidance on breakage recognition, which is the contractual rights of the customer which go unexercised on Gift Cards. Breakage revenue can be recognized in proportion to the pattern of rights exercised by the customer if it is both similar and predictive in nature or when the likelihood of the customer exercising its remaining rights becomes remote.
