Originally Posted by
pmich
Looking through the MILESTONES, they offer selection of "bonus SQC" at 40K, 60K, 80K, 100K and 120K. etc. These can be applied to the current year as you try to earn and maximize SQC. Are they stackable? Essentially could we select them each time (2,500 SQC) and earn 12,500 SQC to aid in our goal to maintain SE. That's not half bad as this lessens the "SQD" factor from $31,250 (125,000 SQC / 4) a bit.
It's stackable, but you only get one selection at each level. To get your 12.5K SQC, you'd have to give up 5 Priority Rewards (which is what I assume most savvy SEs would select as their benefits at those levels). So selecting the bonus SQC makes it easier to stay SE, but erodes much of its value.
Originally Posted by
PLeblond
Not to get overly pedantic, but I believe cash generated by ‘selling’ points is not a revenue per se but rather should be counted as an asset (cash advance received) and a liability (due in points value to the user) until it is spent by the user or an entry is made to write off the liability due to breakage et al. …though I'm not an accountant by any means. Since the CRA only assess points for a user at redemption and not at accrual it’s only considered a revenue to the user when the points are used, and this logically should only count as such (revenue and expense) to the airline accordingly. In this way, the airline would not even pay taxes on all that cash until the points are used by the member or written off.
You're mostly right - they may be able to capture the estimated breakage as revenue immediately (if they sell $100 of points and have estimated breakage of 4%, they'd have $4 of revenue and the other $96 would go to the balance sheet as points liability).
But this has nothing to do with status, which was the point of my previous post.