← Back to context Comment by Tade0 6 months ago How does Starbucks avoid the same with their vouchers? 8 comments Tade0 Reply xeromal 6 months ago They hold 2 billion dollars worth of gift cards on the books. foxglacier 6 months ago They probably have a good model for what percentage of those will never be redeemed so they wouldn't have to count the whole $2 billion as a liability. The OP's one big customer would be harder to predict the future behavior of. otterley 6 months ago That’s not how accounting works. There’s no such thing as a probabilistic liability. 5 replies →
xeromal 6 months ago They hold 2 billion dollars worth of gift cards on the books. foxglacier 6 months ago They probably have a good model for what percentage of those will never be redeemed so they wouldn't have to count the whole $2 billion as a liability. The OP's one big customer would be harder to predict the future behavior of. otterley 6 months ago That’s not how accounting works. There’s no such thing as a probabilistic liability. 5 replies →
foxglacier 6 months ago They probably have a good model for what percentage of those will never be redeemed so they wouldn't have to count the whole $2 billion as a liability. The OP's one big customer would be harder to predict the future behavior of. otterley 6 months ago That’s not how accounting works. There’s no such thing as a probabilistic liability. 5 replies →
otterley 6 months ago That’s not how accounting works. There’s no such thing as a probabilistic liability. 5 replies →
They hold 2 billion dollars worth of gift cards on the books.
They probably have a good model for what percentage of those will never be redeemed so they wouldn't have to count the whole $2 billion as a liability. The OP's one big customer would be harder to predict the future behavior of.
That’s not how accounting works. There’s no such thing as a probabilistic liability.
5 replies →