Magazine article The CPA Journal

Gift Cards and Financial Reporting

Magazine article The CPA Journal

Gift Cards and Financial Reporting

Article excerpt

In the article "Gift Cards and Financial Reporting" (November 2007), the discussion of escheat law on page 30, at the top of the second column, is incorrect. The paragraph which begins "In New York State" actually describes the law in Pennsylvania. The CPA Journal regrets the error.

The escheat law of New York regarding unclaimed property-or "abandoned property," as the state now refers to it is somewhat vague when referring to "gift cards." There is mention only of "gift certificates" (see the definition below). The Laws of New York, Abandoned Property, Article 13, Subsection 1315 Miscellaneous Unclaimed Property, includes the following provisions regarding gift certificates:

[A]ny unclaimed amount representing unredeemed gift certificates sold after December thirty-first, nineteen hundred eighty-three, including gift certificates for merchandise only in which case the face value of such certificate shall be deemed the amount deemed abandoned, and owing in this state, or held by any corporation (other than a public corporation), joint stock company, individual, association of two or more individuals, committee or business trust in this state, and which has remained unclaimed by the owner of such amount for five years, shall be deemed abandoned property.

The definition of "gift certificates" in Laws of New York, Abandoned Property, Article 1, Section 103 - Definitions, subection (g) reads as follows:

"Gift certificate" shall mean a written promise or electronic payment device that: (i) is usable at a single merchant or an affiliated group of merchants that share the same name, mark, or logo, or is usable at multiple, unaffiliated merchants or service providers; and (ii) is issued in a specified amount; and (iii) may or may not be increased in value or reloaded; and (iv) is purchased and/or loaded on a prepaid basis for the future purchase or delivery of any goods or services; and (v) is honored upon presentation. …

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