Monday’s= Small Business
If your business accepts cash in return for a gift card then you have a liability where you do not set an expiry date.
A gift card is as good as money and has the same characteristics. Money does not expire and neither does a gift card. Business owners record the gift card as a liability, because they have an obligation to either perform the service or give back the money. A business owner does not earn money when they issue a gift card. Gift cards are not revenue until you render the service for which you were paid.
There is legislation in Canada that prohibits you from putting an expiry date on a gift card that was issued in exchange for money. This is not to be confused with gift certificates — a business can issue a gift certificate as a prize, or part of a draw and in this situation there can be an expiry date.
It is only if the gift card was issued in exchange for money that it cannot have an expiry date.
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