One of the five issues considered at the March 19, 2015 meeting of the Emerging Issues Task Force, («The Task Force») was the issue of whether liabilities arising from the sale of prepaid stored value cards under three party arrangements should be categorized as financial or non-financial liabilities. Consumers may purchase prepaid stored value cards (gift cards) under a two party arrangement, directly from vendors who stand ready to provide goods and services to the consumer upon redemption of the card. Alternatively, consumers may purchase gift cards under a three party arrangement from an intermediary such as a…
