05262821 Level II Training Book

Jackpot Liabilities (Chapter 4)

• Accounting for Jackpots: • Accrue jackpot liabilities only for amounts the entity is legally obligated to pay as of the reporting date. o ‘Base’ or ‘Reset’ JP amounts. o Local-area progressive jackpots – accrue incremental amount above the base or reset JP amounts. o Non-progressive jackpots – no accrual until won. o Wide area progressives (“WAP”) – not a liability of the casino.

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Promotional Allowances – Comps (Chapter 3)

Above the line, reduce revenues

Below the Line, increase expenses

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BlueBird CPAs

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