The International Accounting Standards Board issued IFRS 15 regarding Revenue from Contracts with Customers to address reporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer. This standard provided guidance on breakage recognition, which is the contractual rights of the customer which go unexercised on Gift Cards. If an entity expects to be entitled to a breakage amount, the revenue can be recognized in proportion to the pattern of rights exercised by the customer. Otherwise, the entity should recognize it when the likelihood of the customer exercising its remaining rights becomes remote.
