kaal:claim:5583610-026

Funding LER from marketing budgets and expensing it immediately under ASC 606 and IFRS 15 avoids the balance sheet liabilities that traditional loyalty programs incur through deferred revenue.

Source quote, verbatim

LER allows issuers to fund LER voucher rewards from marketing budgets, treating them as immediate expenses under U.S. GAAP (ASC 606) and IFRS 15. This avoids balance sheet liabilities

From

Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025), 5.2. Economic Incentives for Shareholder Retention, p. 22
https://ssrn.com/abstract=5583610 · source PDF

Cite as

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

Holds when

issuers reporting under U.S. GAAP or IFRS
rewards classified as marketing expense rather than a material right

Classification

mechanismsupport: arguedinstitutional-design

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