← Back to context Comment by xeromal 6 months ago They hold 2 billion dollars worth of gift cards on the books. 7 comments xeromal Reply 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. jacquesm 6 months ago Let me introduce you to actuarial science:https://en.wikipedia.org/wiki/Actuarial_science 1 reply → foxglacier 6 months ago Yes there is. See provisions and contingent liabilities. 2 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. jacquesm 6 months ago Let me introduce you to actuarial science:https://en.wikipedia.org/wiki/Actuarial_science 1 reply → foxglacier 6 months ago Yes there is. See provisions and contingent liabilities. 2 replies →
otterley 6 months ago That’s not how accounting works. There’s no such thing as a probabilistic liability. jacquesm 6 months ago Let me introduce you to actuarial science:https://en.wikipedia.org/wiki/Actuarial_science 1 reply → foxglacier 6 months ago Yes there is. See provisions and contingent liabilities. 2 replies →
jacquesm 6 months ago Let me introduce you to actuarial science:https://en.wikipedia.org/wiki/Actuarial_science 1 reply →
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.
Let me introduce you to actuarial science:
https://en.wikipedia.org/wiki/Actuarial_science
1 reply →
Yes there is. See provisions and contingent liabilities.
2 replies →