Breakage
In accounting, breakage means the portion of a prepaid right a customer is expected never to exercise — unused gift card balances, unredeemed credits. Recognized in proportion to the pattern of redemption if the entity expects breakage; otherwise when redemption becomes remote. Amounts owed to a state under unclaimed property law are a liability, not revenue.
- Layer
- Lexicon
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Authority
This definition follows ASC 606-10-55-48.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- forfeit income
- write-back
Nearby in the catalog
No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.
6Statements
Family specTerms this one depends on
- EscheatmentRemitting unclaimed property — uncashed vendor checks, customer credit balances — to the state after its dormancy period
- LiabilityA present obligation of the entity to transfer an economic benefit (FASB CON 8 ¶E37)
- RevenueInflows or enhancements of assets, or settlements of liabilities, from delivering goods or services — recognized when control transfers, not when cash arrives
Also in Revenue recognition
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.