2 thoughts on “What is the accounting treatment of the customer's reward points”
Vincent
1. Sales revenue confirmed in the current period (1) If the topic gives the fair value of the reward points In some cases, the company will grant customer reward points while selling products or providing labor services. Under the circumstances, the entire payment cannot be confirmed as the income. It should be shared between the sales of the product sales or the income generated by the labor service and the fair value of the award accumulation. The staged staged amortization of points is confirmed to be income. The parts obtained or receivables receivable deducting the awarded volume of the awardal points are recognized as the current income. (2) If the topic does not give the fair value of the reward points This does not indicate what the fair value of each reward points is, so the relatively fair value ratio method is needed. For example, the total payment of goods is 15 million, and the goods can be exchanged for 0.5 reward points per 10,000 yuan. Then the awarded accumulation is fair value = 1500 × 0.5/(1 0.5) = 500. The accounting score is: (1) Sales (assuming existing sales) borrowing: bank deposit loan: main business income deferred income r r r r r r r r The Article 35 of the "Revenue" Guidelines for Extended Information stipulates that: For sales with customers with additional options, the enterprise shall evaluate whether the option is provided with a major right to the customer. If an enterprise provides major rights, it shall be used as a single performance obligation, and the transaction price shall be distributed to the performance obligations in accordance with Article 20 to 24 of this Guideline. When choosing the right to fail, confirm the corresponding income. It if the individual price of the customer's additional purchase right cannot be observed directly, the enterprise shall comprehensively consider all related information of the discounts that the customer can get and does not exercise the options. Later, a reasonable estimate. It Article 20 of the New "Income" stipulates that if the contract contains two or more performance obligations, the enterprise shall be on the start of the contract and in accordance with the relative proportion of the individual price of the commodity prices promised by the single performance volunteers. Spread the transaction price to the obligations of each single performance. Enterprises shall not re -share the transaction price due to changes in the separate price of the contract. "Customer Reward Points" belongs to a specific expression of "Sales of Customers' additional options" in the new "income" criterion. According to the above provisions, the company shall analyze and determine whether the options for the integral exchange are provided with a major right (substantial) for the selection right of the integral exchange. If when the customer exercises the selection power to exchanges additional valuable products, it is usually considered that the right to choose to provide a major right to the customer. If the right to choose to provide customers with major rights, it shall be used as a single performance obligation. When judging whether the right is significant, the amount and nature should be considered for comprehensive judgment. Reference information Source: Baidu Encyclopedia-Main business income
1. Sales revenue confirmed in the current period (1) If the topic gives the fair value of the reward points In some cases, the company will grant customer reward points while selling products or providing labor services. Under the circumstances, the entire payment cannot be confirmed as the income. It should be shared between the sales of the product sales or the income generated by the labor service and the fair value of the award accumulation. The staged staged amortization of points is confirmed to be income. The parts obtained or receivables receivable deducting the awarded volume of the awardal points are recognized as the current income. (2) If the topic does not give the fair value of the reward points This does not indicate what the fair value of each reward points is, so the relatively fair value ratio method is needed. For example, the total payment of goods is 15 million, and the goods can be exchanged for 0.5 reward points per 10,000 yuan. Then the awarded accumulation is fair value = 1500 × 0.5/(1 0.5) = 500. The accounting score is: (1) Sales (assuming existing sales) borrowing: bank deposit loan: main business income deferred income r r r r r r r r 2. During the exchange Is when the customer exchange reward points, the granting enterprise shall confirm the income of the original delayed income related to the exchanges. Customers do not necessarily redeem all the reward points, so each balance sheet date must be re -estimated how much points will be exchanged. It is estimated that the proportion of the total number of points that will be exchanged is calculated, not the value that is initially estimated. The total number of reward points used by customers using cumulative use of customers/(Total reward points × estimated to exchange points for the balance sheet date) calculate the total deferred income amortization of the asset liabilities (that is, due to the reward for the reward The cumulative income of points), and then subtract the deferred income of amortized in the previous year (that is, the cumulative income of the cumulative confirmation of the reward points in the previous year), the number of amortization of the deferred income (that is, the current issue of the current issue (that is, the current issue Revenue due to reward points). The accounting score is: borrowing: deferred income loan: main business income The total number of deferred income should be deducted when the last year is amortized. All parts are confirmed as the current income.
1. Sales revenue confirmed in the current period
(1) If the topic gives the fair value of the reward points
In some cases, the company will grant customer reward points while selling products or providing labor services. Under the circumstances, the entire payment cannot be confirmed as the income. It should be shared between the sales of the product sales or the income generated by the labor service and the fair value of the award accumulation. The staged staged amortization of points is confirmed to be income. The parts obtained or receivables receivable deducting the awarded volume of the awardal points are recognized as the current income.
(2) If the topic does not give the fair value of the reward points
This does not indicate what the fair value of each reward points is, so the relatively fair value ratio method is needed. For example, the total payment of goods is 15 million, and the goods can be exchanged for 0.5 reward points per 10,000 yuan. Then the awarded accumulation is fair value = 1500 × 0.5/(1 0.5) = 500.
The accounting score is:
(1) Sales (assuming existing sales)
borrowing: bank deposit
loan: main business income
deferred income r r r r r r r r
The Article 35 of the "Revenue" Guidelines for Extended Information stipulates that: For sales with customers with additional options, the enterprise shall evaluate whether the option is provided with a major right to the customer. If an enterprise provides major rights, it shall be used as a single performance obligation, and the transaction price shall be distributed to the performance obligations in accordance with Article 20 to 24 of this Guideline. When choosing the right to fail, confirm the corresponding income.
It if the individual price of the customer's additional purchase right cannot be observed directly, the enterprise shall comprehensively consider all related information of the discounts that the customer can get and does not exercise the options. Later, a reasonable estimate.
It Article 20 of the New "Income" stipulates that if the contract contains two or more performance obligations, the enterprise shall be on the start of the contract and in accordance with the relative proportion of the individual price of the commodity prices promised by the single performance volunteers. Spread the transaction price to the obligations of each single performance. Enterprises shall not re -share the transaction price due to changes in the separate price of the contract.
"Customer Reward Points" belongs to a specific expression of "Sales of Customers' additional options" in the new "income" criterion. According to the above provisions, the company shall analyze and determine whether the options for the integral exchange are provided with a major right (substantial) for the selection right of the integral exchange.
If when the customer exercises the selection power to exchanges additional valuable products, it is usually considered that the right to choose to provide a major right to the customer. If the right to choose to provide customers with major rights, it shall be used as a single performance obligation. When judging whether the right is significant, the amount and nature should be considered for comprehensive judgment.
Reference information Source: Baidu Encyclopedia-Main business income
1. Sales revenue confirmed in the current period
(1) If the topic gives the fair value of the reward points
In some cases, the company will grant customer reward points while selling products or providing labor services. Under the circumstances, the entire payment cannot be confirmed as the income. It should be shared between the sales of the product sales or the income generated by the labor service and the fair value of the award accumulation. The staged staged amortization of points is confirmed to be income. The parts obtained or receivables receivable deducting the awarded volume of the awardal points are recognized as the current income.
(2) If the topic does not give the fair value of the reward points
This does not indicate what the fair value of each reward points is, so the relatively fair value ratio method is needed. For example, the total payment of goods is 15 million, and the goods can be exchanged for 0.5 reward points per 10,000 yuan. Then the awarded accumulation is fair value = 1500 × 0.5/(1 0.5) = 500.
The accounting score is:
(1) Sales (assuming existing sales)
borrowing: bank deposit
loan: main business income
deferred income r r r r r r r r
2. During the exchange
Is when the customer exchange reward points, the granting enterprise shall confirm the income of the original delayed income related to the exchanges. Customers do not necessarily redeem all the reward points, so each balance sheet date must be re -estimated how much points will be exchanged. It is estimated that the proportion of the total number of points that will be exchanged is calculated, not the value that is initially estimated.
The total number of reward points used by customers using cumulative use of customers/(Total reward points × estimated to exchange points for the balance sheet date) calculate the total deferred income amortization of the asset liabilities (that is, due to the reward for the reward The cumulative income of points), and then subtract the deferred income of amortized in the previous year (that is, the cumulative income of the cumulative confirmation of the reward points in the previous year), the number of amortization of the deferred income (that is, the current issue of the current issue (that is, the current issue Revenue due to reward points).
The accounting score is:
borrowing: deferred income
loan: main business income
The total number of deferred income should be deducted when the last year is amortized. All parts are confirmed as the current income.