Derecognition is an accounting technique by which unexercised customer rights booked as liabilities on a balance sheet are debited, resulting in a credit to income. In is usual form, it applies to non-escheatable liabilities not subject to back-end fees or expiration dates. Some also use the technique, or analogous methods, to advance revenue recognition in the face of regulations delaying the use of back-end fees or expiration dates. The technique is regulated by SEC guidance, GAAP set by FASB, IFRS set by IASB, and State unclaimed property laws.

Card Compliant is an industry leader regarding the derecognition technique. Our services are supported by our proprietary technology systems designed to process applicable unclaimed property laws, SEC rules, and accounting standards on per item basis to provide metrics and information needed for implementing the technique both in theory at in actual operation.

Our Range: Revenue Recognition – Derecognition for Ongoing Programs – Derecognition for Transferred or Swept Programs – Advancing Revenue against Future Fees or Expirations

Our Experience: Closed Loop Programs – Open Loop Programs – Mixed Loop Programs – Non-Cash Instruments – Instruments with Cash Redemptions – Retail Instruments – GiftCo Instruments – Bank Instruments – Trade Payables and Credits – And More.

Our Capabilities: Breakage Calculations – Breakage Speeds – Breakage Forecasts & Analytics – Proportionate Method – Remote Method – Predictability and Similarity Standards – Moving Breakage Rates – Breakage Influencers – Derecognition in Multiple Currency Programs – Analytics & Forecasts – Benchmarks – And More.