How we account for redemption of frequent flyer miles?

How we account for redemption of frequent flyer miles?

JetPrivilege Miles, which are valid for three years, are accrued in the individual JetPrivilege accounts of the members based on the sectors they have flown on Jet Airways’ network. Provisions are made based on accrued JPMiles (cumulatively for all members) as on the reporting date, in respect of incremental operating expenses, which would be incurred when these miles are redeemed by the members. As and when the miles are actually redeemed, the provision is proportionately reversed to the extent of the operating expenses incurred.

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