I wonder whether a public casino corporation would report player comp
points as an expense for the quarter or year they are earned or at
the time they are spent by the player. If the latter such a
promotion would tend to boost current period earnings amd my be
desireable because of Wall Street's short term focus.
David
d_richheimer wrote:
I wonder whether a public casino corporation would report player comp
points as an expense for the quarter or year they are earned or at
the time they are spent by the player. If the latter such a
promotion would tend to boost current period earnings amd my be
desireable because of Wall Street's short term focus.
I'm not directly experienced with accounting in the gaming industry.
However, I'm reasonably sure it's the case that comp points are
expensed as earned, with a reserve established against the future use
by the player. There would be some allowance for a proportion of
points expected to expire prior to redemption.
These accounts would be reconciled over time to actual
redeptions/forfeitures.
- Harry
my guess is comps are expensed when and if redeemed
especially in these days of creative accounting (fnm etc)
there's very little liability, if there was a problem the casino can
simply cancel or downgrade all existing comp, which has been done
--- In vpFREE@yahoogroups.com, "Harry Porter" <harry.porter@v...>
wrote:
d_richheimer wrote:
> I wonder whether a public casino corporation would report player
comp
> points as an expense for the quarter or year they are earned or
at
> the time they are spent by the player. If the latter such a
> promotion would tend to boost current period earnings amd my be
> desireable because of Wall Street's short term focus.I'm not directly experienced with accounting in the gaming
industry.
However, I'm reasonably sure it's the case that comp points are
expensed as earned, with a reserve established against the future
use
by the player. There would be some allowance for a proportion of
points expected to expire prior to redemption.These accounts would be reconciled over time to actual
redeptions/forfeitures.- Harry