ICAEW chart of the week – Santa’s balance sheet

We are wrapping up our series of charts of the week with a look at Santa’s balance sheet. 

This chart takes Father Christmas’s financial position immediately before the start of his deliveries to around 27.6m households across the UK on Christmas Eve. Based on survey data (thanks to the Centre for Retail Research) we have estimated that Santa should have around £12.7bn in gifts to distribute this year. Assuming one sack per chimney, each of Santa’s sacks is estimated to hold an average of £460 in presents, based on £244 in gift purchases per adult living in the UK. 

Under Santa’s innovative financing model, and in accordance with the relevant UK Statements of Recommended Practice (SORPs), this means that there is £12.7bn in deferred income to record on the liabilities side of the balance sheet. Based on data from UK Finance on card transactions, the majority of this will be purchased using payment cards, with just under a quarter of the total paid for using credit cards. 

However you finance your festive season, we will leave you with our best wishes for a Happy Christmas (or other festival as appropriate) and for a prosperous 2018. Chart of the week will return in the New Year!

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