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This case deals with the appropriate accounting for and disclosure of gift card revenue on the financial statements. Secondary issues examined include materiality, the quality of reported earnings, and contingent liabilities. Underlying these specific issues is the general issue of accounting policy choice and its effect on the comparability of reported financial results across companies. The case requires students to find and review authoritative accounting literature (including appropriate professional standards) and relevant financial filings (for example, Forms 10-K) for several companies. This case has a difficulty level of three, four, or five. The case is designed to be taught in two class hours and is expected to require five hours of outside preparation by students. Using example disclosures from Best Buy Co, Inc and other retailers, students learn about the use of retailer-issued gift cards and identify issues that arise in accounting for their issuance and redemption. Students also learn about the more general topic of how accountants apply financial statement disclosure rules to new business practices as they emerge.