# kaal:claim:5583610-009

**Claim.** Because LER rewards are funded out of marketing budgets at roughly one to five cents per holder-day and expensed immediately under U.S. GAAP, the program avoids the balance sheet drag that conventional loyalty liabilities create.

**Type.** mechanism  **Support.** asserted

**Holds when.**

- U.S. GAAP reporting issuers
- rewards funded as marketing expense

**Source quote.**

> LER avoids balance-sheet drags and streamlines finances by using marketing budgets at a modest $0.01–0.05 per holder-day and expensed upfront under U.S. GAAP.

**From.** Wulf A. Kaal, *Liquid Equity Rewards in Corporate America* (2025), 2.1. How LER Works, page 7

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

**Verify.** sha256 of source PDF `2d73609d95ddb1573acc2a9e7af617fbe6283d6e591deb6317f6d5d804517c62` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards%20in%20Corporate%20America.pdf

**Topics.** economics

**Keywords.** accounting-treatment, marketing-budget, balance-sheet, cost-structure

**Related claims.**

- restates: https://wulfkaal.github.io/claims/5454054-008

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.