# kaal:claim:5583610-026

**Claim.** 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.

**Type.** mechanism  **Support.** argued

**Holds when.**

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

**Source quote.**

> 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, page 22

**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.** institutional-design

**Keywords.** asc-606, ifrs-15, deferred-revenue, accounting-treatment

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