Vivo City, an established retail chain store, have recently introduced a customer loyalty program to become more competitive with other retail stores. Customers are provided with points based on the dollar amount of purchases, which entitles the customer to free vouchers when certain thresholds are reached (i.e. $10 free voucher for every $100 spent). The accountant of Vivo City has approached you seeking advice on how the company should account for its customer loyalty program.

Required: Using the definition and recognition criteria of a liability, advise the accountant on whether the customer loyalty programme should be recorded as a liability on the Statement of Financial Position.