Accounting for Gift Cards:
Prepare for the Holiday Season

Holiday seasons bring joy and excitement to all with colorful autumn trees, family gatherings and festive decorations. When it comes to restaurant entities, it’s also a time for bustling gift card sales and various promotions! However, there are several points for restaurants to consider from an accounting perspective, especially as it relates to ASC 606 and new revenue recognition rules. 

• What accounting guidance applies to gift card accounting? Are there any new accounting pronouncements that have occurred since the 2019 holiday season?
• When should the redeemed gift card revenue be recognized?
• How are unredeemed balances properly tracked?
• How should promotional amounts be recorded?
• What local and state escheatment laws affect gift card forfeitures?

To assist you in being prepared for what is to come this holiday season, we're pleased to provide updated guidance and scenarios for your review.

SBA Guidance for
PPP Borrowers and M&A Transactions

In case you missed it, a procedural notice was released that defines the steps a buyer and seller must take to obtain approval or effect a change in ownership for a company with a PPP loan. If you have a PPP loan and are contemplating a transaction, click here.

 Local Leaders Share Business Outlook Amid Pandemic

The impacts of COVID-19 have varied widely. As a result, GBQ launched a survey to our clients to gather and comprehend the perspectives of business owners that we know personally. We're pleased to provide a summary of the information collected.

Keeping Your
Firm's Security
House in Order

Secure and resilient companies operate their cybersecurity program as part of their business risk management, not simply as another element of IT risk. Effective, mature security programs start with management working to answer these questions.

Dustin Minton

Director,
Restaurant Services

Kaz Unalan

Director, Tax & Business Advisory Services

Tom Powers

Director of
Assurance Services

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