Airlines accounting
Plain-English guides to the accounting issues airlines companies face, each with a worked example from the industry.
Airlines accounting guides
- Airline accounting: the key IFRS issues5 minute readAirline accounting explained: aircraft leases under IFRS 16, maintenance, components, frequent flyer miles, unflown tickets, fuel hedging, sale and leaseback.
- Aircraft leases under IFRS 165 minute readAircraft leases under IFRS 16: lease liability and right-of-use asset, US dollar exchange differences, lease term, flight-hour payments and wet leases.
- Maintenance reserves and checks5 minute readAircraft maintenance reserves under IFRS: when reserves paid to lessors are an asset or a lease cost, engine shop visits, heavy checks and US GAAP methods.
- Aircraft components and depreciation4 minute readAircraft components under IAS 16: splitting the cost of an aircraft, useful lives, residual values, maintenance components, spares and pre-delivery payments.
- Frequent flyer programmes5 minute readFrequent flyer programmes under IFRS 15: allocating ticket prices to miles, redemption and breakage, co-branded credit cards, partner awards and US GAAP.
- Unused tickets and breakage4 minute readUnused airline tickets under IFRS 15: the air traffic liability, breakage on tickets that expire unused, refundable fares, vouchers and change fees.
- Fuel hedging5 minute readAirline fuel hedging under IFRS 9: cash flow hedges of jet fuel, hedging the crude oil component, options and collars, basis adjustments and ineffectiveness.
- Aircraft sale and leaseback4 minute readAircraft sale and leaseback under IFRS 16: when it is a sale, the restricted gain, off-market terms, deliveries direct from the manufacturer and US GAAP.
- Lease return conditions4 minute readAircraft lease return conditions under IFRS: provisions built up as the aircraft flies, discounting, maintenance reserves, right-of-use assets and US GAAP.
- Airline impairment testing5 minute readAirline impairment testing under IAS 36: network cash-generating units, value in use with leased fleets, landing slots, goodwill, groundings and reversals.
- Ancillary revenue4 minute readAirline ancillary revenue under IFRS 15: bags, seats and priority services as part of the flight, agency sales of hotels and insurance, and presentation.
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About these guides
Each guide starts from an accounting issue airlines companies actually face and works through it with numbers from the industry. 11 of 11 planned guides are published; more are added with every batch.