Amazon.com Inc. says a new revenue-recognition accounting rule that goes into effect for public companies in 2018 will impact the timing of when it will recognize sales of its own electronic devices as well as the gross amount of sales it claims.
The Financial Accounting Standards Board, or FASB, Accounting Standards Update (ASU) called ASC 606 will impact a wide range of customer services across retailers and restaurant chains, including credit vouchers, loyalty programs and credit card rewards.
“As we evaluate the impact of this ASU, the more significant changes that we have identified relate to the timing of when we recognize revenue and the gross amount of revenue that we present,” Amazon
wrote in its July 28 filing.
“These timing changes will include Amazon-branded electronic devices sold through retailers, which will be recognized upon sale to the retailer rather than to end customers, and the unredeemed portion of our gift cards, which we will begin to recognize over the expected customer redemption period,…