How should revenue from virtual currency be recognized for a social gaming company?
This is a really interesting question. Under the premise of the question (virtual currency purchased vs. recognizing revenue), I would imagine that the revenue is recognized once spent as is the standard with gift cards. And, like gift cards, it would seem that the virtual currency would also be subject to state escheat or unclaimed property laws. More specifically: Unclaimed Property Laws generally, apply to intangible property (including money, consumer credits, stored value, etc.) held by a company that is abandoned or unclaimed by the owner after a statutory dormancy period Requirements: Pay the value of “unclaimed” property to states in accordance with established jurisdictional rules And, with the Credit Card Act of 2009, I have to imagine that the management of virtual currency will need to be taken very seriously. Here’s an interesting write up that quotes Dax Hansen from Perkins Coie’s Electronic Financial Services practice – http://www.informationweek.com/n… It provides som
