Level II - NM Training Book

Incentive Programs (Chapter 3)

• 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.

Participation and Similar Arrangements (Chapter 5) • Participation arrangements are typically operating leases and fees paid under these arrangements should be reported as an expense rather than a contra- revenue. (i.e. 80/20 Splits)

• Third party license arrangements are typically not leases and would also be reported as an expense. (Yahtzee, Monopoly, etc.)

• Wide Area Progressives that are not accounted for as leases should report fees paid as contra-revenue. (Wheel of Fortune, etc.)

BlueBird CPAs

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