Henry Haphorn wrote:From an accounting perspective, Thorn Galen is right on one thing (although he is way off with his math).
There is a critical step that people here are missing.
1. Player A buys GTC online and converts the GTC to PLEX.
2. PLEX that is unused and sitting in the hangar adds what CCP would most likely call "Deferred Income". 1x unused PLEX = Cash stuck in limbo (no one can touch it) until one of three conditions are met: ***NOTE: Even PLEX that is bought with ISK by another player is still unused PLEX.***
A) Player A (or anyone other than Player A that bought the PLEX from him/her) redeems the PLEX for game time.
B) Player A (or anyone other than Player A that bought the PLEX from him/her) donates the PLEX to a cause hosted by CCP.
C) Player A (or anyone other than Player A that bought the PLEX from him/her) redeems the PLEX for Aurum.
Those are the only three conditions in which cash in limbo becomes unstuck and is no longer deferred income.
3. If conditions A or C are met, CCP keeps the cash and marks it as service income.
3.1. If condition B is met, CCP doesn't keep the cash so it pays the cash to a charity.
If you consider how PLEX is now commonly used as a traded commodity and thus some traders might just simply hold the unused PLEX for future trades, that means there is a great deal of cash stuck in limbo. How much? Only CCP knows.
But regardless, CCP doesn't lose money this way. They lose money when players unsub.
Of course, I could be wrong as well. Can anyone come up with a better theory?
But you are talking about the books. How they record it. But while that sale should be recorded as deferred income (presuming CCP is on GAAP or another system that follows that rule (IFRS?)), they are by no means forced to put that cash in an untouchable escrow account until the plex is redeemed. They have the cash, and they can spend it. Don't forget about the other side of that entry. They record the cash in a regular cash account, not restricted cash account (CCP is not a NFP).
And you forgot scenario D) Plex is destroyed when in the cargo of a ship that goes boom. This would like a gift card that never gets used.
Ok, sorry for this becoming an accounting thread :)