Incentive Programs (Chapter 6) (Slot Clubs, Promos, etc.)
Characterization of Incentives:
(1) marketing incentives to induce potential customers to enter into transactions (Discretionary); or (2) loyalty programs for customers based on activities or transactions undertaken (Non- discretionary).
Incentive Programs
• Free play o Discretionary – should be revenue neutral, no accrual (watch out for statistical reports!!) o Non-discretionary – accrue estimated cost and treat as a contra revenue • Cash or cash equivalent incentives o Discretionary – net against revenue o Non-discretionary – accrue estimated cost and treat as a contra revenue • Complimentaries o Discretionary – report as expense rather than reduction of revenue. No revenue should be reported for discretionary comps o Non-discretionary – accrue estimated cost of providing comps to expense.
BlueBird CPAs
22
Made with FlippingBook - Online Brochure Maker