Breakage

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Breakage

1. In accounting, an amount of money set aside to cover the cost of goods that break during transport. Because these goods cannot be sold, the company loses the revenue they would produce. A company may prevent this revenue loss from adversely affecting its finances by setting aside a breakage allowance. This exists due to fiscal conservatism and not because a company expects an unusual number of goods to break.

2. In retail, a gift card that is purchased but not used. The revenue a retailer generates from breakage is all profit, except for the minimal costs necessary to produce the cards.

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References in periodicals archive ?

Total annual breakage for all firms during the sample time frame grew from $10.

The use of gift card breakage as an earnings management tool

Beginning in 2015, we began to recognize breakage revenue on unredeemed gift cards sold in the U.

Gift card breakage and artificial income smoothing: an empirical analysis

Of course, in practice, most companies will record income from gift card redemptions as they occur and will record breakage income as an adjusting entry at the end of each accounting period.

Lost and found: revenue recognition standard offers advice on booking liabilities and breakage income for unredeemed gift cards

Table 1 shows the result of variance analyses and proved that there is meaning difference between planters of breakage percent aspect in 1% level, whereas in comparing average, the ting granule pneumatic Maschio Gaspardo has superiority Taka machine with least amount breakage in around of 47% in compare with 5.

Technical evaluation of planter in canola mechanize cultivation in north of Shoushter Region

In addition to the scarcity of guidance when and how to recognize breakage, there is no guidance on where breakage revenue should be reported on the income statement.

Gift or grief? While popular, gift cards come with accounting considerations

To further lower granulate breakage rate, the auger filler can be optimized.

Sophisticated packaging systems ensure better instant coffee: intelligently designed packaging systems are essential to bringing high-quality instant coffee to market

The effect on net income of this transaction is different than a breakage transaction (in which there would be no cost of goods sold as an expense).

Accounting for retailer-issued gift cards: revenue recognition and financial statement disclosures

The neural network stores a number of reference force patterns that are characteristic of tool breakage.

Neural network based control algorithm in robotised unmanned flexible manufacturing system

The breakage you speak of occurs with the ejector assembly as it was first designed.

Cynergy ejector repair

It is possible to unlock the secrets to good, healthy hair and avoid breakage.

Hair today, gone tomorrow? You can avoid hair breakage ..

Even with regular pruning, these most fragile trees -- which grow in a broad median strip between Brentwood and Santa Monica -- are subject to breakage of limbs.

IN THE GARDEN DON'T BE PRUDISH ABOUT PRUNING TREES

I am a 43-year-old woman, and for the last year and a half I have been slowly losing my hair through breakage and shedding.