Measuring Financial Performance and Accounting for Loyalty Program Currencies

Evert de Boer () and Xiao Yao Chin ()
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Evert de Boer: Managing Partner, On Point Loyalty
Xiao Yao Chin: Partner, On Point Loyalty

Chapter Chapter 7 in Loyalty Programs and the Currency Effect, 2025, pp 133-155 from Springer

Abstract: Abstract With all the pieces of the puzzle in place, this chapter offers a comprehensive profit and loss (P&L) view of the loyalty program. De Boer and Chin explain why expressing the performance of your loyalty currency in the form of an income statement (P&L) offers distinct advantages. The authors provide a step-by-step guide on the components of the P&L. Other financial statements including the cash flow statement and balance sheet are discussed, including the peculiarities that loyalty currencies represent in this context. De Boer and Chin provide an overview of the key accounting principles for loyalty programs, including a discussion of the features that makes accounting for loyalty programs a challenge for some.

Keywords: Loyalty program; Strategy; P&L; Income statement; Accounting; Fair value; Deferred revenue; Liability; Balance sheet (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-78849-9_7

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DOI: 10.1007/978-3-031-78849-9_7

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