FMD 2018 Level II Training Book

Progressive Jackpot Liabilities (Chapter 4) • Accounting for Jackpots: o Accrue jackpot liabilities only for amounts the entity is legally obligated

to pay as of the reporting date. o ‘Base’ or ‘Reset’ JP amounts excluded. o Non-progressive jackpots – no accrual until won. o Wide area progressives (“WAP”) – not a liability of the casino.

Participation and Similar Arrangements (Chapter 5) • Participationarrangements are typicallyoperating leases and fees paidunder these arrangements should be reportedas anexpense rather thana contra- revenue. (i.e. 80/20 Splits) • Thirdparty license arrangements are typicallynot leases andwould also be reportedas anexpense. (Yahtzee,Monopoly, etc.) • Wide Area Progressives that are not accounted for as leases should report feespaid as contra-revenue. (Wheel of Fortune, etc.)

BlueBird CPAs

21

Made with FlippingBook - Online Brochure Maker