[NortySpock]

Correct. Of course you could have the gift card expire after a year, letting you remove those liabilities from your balance sheet eventually.

Otherwise you could antipate that say 1% of your customers will use a gift card on any particular day, and hopefully you have that spaced out far enough that you can survive paying your liabilities over time.

[frosted-flakes]

But most countries/states have laws that prevent gift cards from expiring.