15 AAC 160.830. Method of accounting

(a) A permittee or licensee shall use accounting principles that conform to generally accepted accounting principles (GAAP) as modified by AS 05.15 and this chapter.

(b) The accounting for a gaming activity must include all gross receipts and expenses attributable to the conduct of the gaming activity. All gaming gross receipts and expenses must be matched to each gaming

(1) permit; and

(2) activity.

(c) Gross receipts and expenses from gaming activities other than bingo and pull-tabs may be reported using either the cash or modified cash method of accounting.

(d) Even though a permittee or licensee uses a different accounting method for tax, financial, or other purposes, the permittee or licensee must use the other comprehensive basis of accounting method for the accounting of revenue and expenses of charitable gaming that is required by AS 05.15 and this chapter.

(e) A permittee may not pay the expenses of gaming conducted on its behalf by an operator. A member of a multiple-beneficiary permittee may not pay the expenses of gaming conducted by the multiple-beneficiary permittee.

(f) Expenses incurred in connection with gaming activities, except for prizes paid by cash or merchandise awarded as prizes, must be paid by a check drawn on the bank account described under 15 AAC 160.820(a) .

(g) A permittee that receives a refund from a landlord, contractor, or supplier for goods or services purchased, or rental or lease expenses incurred during a calendar year, may reduce the amount of gaming expenses by the amount of the refund for that calendar year. A cash refund of expenses paid before the year-end must be received before January 31 of the year following the year to which the refund applies. A signed statement from the landlord, contractor, or supplier of the goods or services must be submitted to the department by January 31. The statement must disclose the amount of the refund and confirm that the price of goods or services in subsequent years will not be increased to recover the refund and that there is no agreement or expectation for repayment or offset of the refund.

(h) A permittee may request in writing an extension of the January 31 deadline for receiving the refund only if the extension does not prevent the timely filing of an annual report. An extension under this subsection is not the basis for issuance of a permit or a temporary permit.

(i) Gross receipts and expenses not reported as a result of a change to the accrual method of accounting under (a) of this section will not be considered by the department in determining compliance with AS 05.15.160 (c) and (d) in the year immediately before the change.

(j) A permittee may report pull-tab inventory based on the number of sealed pull-tab series in the permittee's possession.

History: Eff. 7/30/94, Register 131; am 11/10/96, Register 140; am 1/1/2003, Register 164

Authority: AS 05.15.060

AS 05.15.100

AS 05.15.160

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