 Regal Hair Salon: Tax and financial reporting of gift cardsMahendra Gujarathi and Tracy Noga Journal of Accounting Education, 2012, vol. 30, issue 1, 131-142 Abstract: Regal Hair Salons Inc., an owner and operator of hair salons across the United States, has enhanced its brand recognition through gift cards and promotions. Using authoritative tax literature, you have to determine the amount and timing of its federal income tax liability for the gift cards of other retailers that Regal has sold, gift cards for its own products and services, and the gift cards that it has issued during a special promotion. You also have an opportunity to determine whether Regal’s financial reporting policies with respect to gift cards are consistent with Generally Accepted Accounting Principles (GAAPs), using FASB Accounting Standards Codification. Finally, based on your review of book-tax differences, you are to determine the appropriate current and deferred tax provision. The case provides an opportunity to examine several issues in a real-world setting, strengthen your tax and accounting research capabilities, and develop your critical thinking skills. Keywords: Taxation of gift cards; Gift card accounting; Book-tax differences; FASB codification; Income tax law research (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joaced:v:30:y:2012:i:1:p:131-142 DOI: 10.1016/j.jaccedu.2012.06.005 Access Statistics for this article Journal of Accounting Education is currently edited by Natalie Tatiana Churyk More articles in Journal of Accounting Education from Elsevier |
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