SlideServe
Télécharger Obtenir Pro
Menu
Accueil Pro
Préférences
ApparenceLight Aide et commentaires
© SlideServe · v2026

REVENUE RECOGNITION

marlis avatar
marlis
16 diapositives · 327 Views · Sep 02, 2014

This document provides an in-depth analysis of revenue recognition principles within the transportation sector, focusing on passenger and cargo revenue, unredeemed coupons, and commission structures. It outlines current accounting standards, including IAS 1 and IAS 18, and emphasizes the importance of transparency and comparability in financial reporting. Key recommendations for organizations include prudent recognition of unredeemed coupons, appropriate disclosure practices, and the treatment of discounts and commissions. This overview aims to enhance understanding and compliance with revenue recognition standards.

#revenue recognition #revenue recognition ppt #powerpoint #presentation
REVENUE RECOGNITION - slide 1
01 / 16REVENUE RECOGNITION
1 / 17

Télécharger la présentation

REVENUE RECOGNITION
Une image / un lien ci-dessous est fourni (tel quel) pour télécharger la présentation

Politique de téléchargement : le contenu du site vous est fourni TEL QUEL pour votre information et votre usage personnel ; il ne peut être vendu, concédé sous licence ni partagé sur d’autres sites sans l’accord de son auteur.Le contenu vous est fourni TEL QUEL, pour votre information et votre usage personnel uniquement. Téléchargez la présentation en cliquant sur ce lien. Lors du téléchargement, si vous ne parvenez pas à télécharger une présentation, l’éditeur a peut-être supprimé le fichier de son serveur.Pendant le téléchargement, si vous ne parvenez pas à obtenir une présentation, le fichier a peut-être été supprimé par l’éditeur.

F I N

Plus de contenu associé

Transcription de la présentation

  1. REVENUE RECOGNITION

  2. OUR GROUP MEMBERS AYUSHI AGGARWAL ITISHA SHARMA KUMAR SATYANSHU

  3. OUTLINE • Background • Objectives • Current accounting standards framework • Unredeemed coupons • Commission and discounts • Other revenue • Recommendations • Disclosures

  4. background • DEFINITION • Revenue comprises of • Turnover from transportation ( passenger, cargo and mail services) • Provision of engg. Maintenance,leasing ,package holidays. • Basic principle of revenue be recognized • Treatment of passenger & cargo revenue is consistent. • Treatment of standard and volume incentive commissions- reflects applications of accruals, not consistent

  5. CONTD… • Recognition of unredeemed coupons & time period (vary ) • Taxes and airport passenger charges(airlines act as collectors) • IATA accounting policy task force. • Users of financial statements have great degree of transparency(recommendations)

  6. OBJECTIVES • Transportation revenue(passenger & cargo revenue) • Frequent flyer programs • Accrual principle be recognized when carriage is provided • Guidance addresses • Time period • Treating commissions and discounts • Categorize revenue • Requires transparency and comparability

  7. CURRENT ACCOUNTING STANDARDS FRAMEWORK • International Accounting standards committee • IAS 1 :Disclosure of accounting policies • IAS 18:Revenue Recognition(service transactions-uncertainity)

  8. Unredeemed coupons • Passenger tickets depends upon conditions of sale and type of fare • Timing for taking credit will depend on ability of airline to rely on historic data. • Airlines have these coupons in 4 ways- • Calculate proportion of tickets by value which may not redeemed & credit a conservative estimate of that value to revenue • They age coupons monthly & write proportion back to revenue each month in line not being redeemed,will have return back the revenue(12 to 18 months)

  9. CONTD.. • No credit is taken on sale immediately but value of tickets is written back to revenue(12 to 15 months) after sale where material volume of coupons is redeemed. • Some have longer periods to write back revenue(18 -24 months)after the date of sale

  10. Commission and discounts • Ticket sales through travel agents • Complex issue-use of override commission • Lack of consistency among airlines • Recognize costs and revenue of flight • Treatment varies between netting against revenue /including in selling and distribution costs or standard basic commission 9-10% or volume driven incentives(discounts) • Discounts are given as the incentives to encourage the purchase of the tickets-comprise of revenue of airlines

  11. Other revenue • Income generated by services provided other than passenger or cargo. It may include income from- • leasing of aircraft • Third party engineering and maintenance services • Catering • Package holiday sales-air content (normal passenger revenue)and land content.

  12. RECOMMENDATIONS APTF Recommends the following- • Unearned revenue be carried forward and be included in current liabilities • Unredeemed coupons be recognized as revenue on prudent basis in light of airline’s experiences. An estimate of unredeemed coupons value be recognized on sale with balance written back (18 months) • Commission and discounts should be recognized in P/L account as associated revenue

  13. Contd… • Revenue should be disclosed net of discount • Commissions should be included in cost of sale • Income from package be recognized as normal for passenger revenue for air content & completion of holiday for land content and costs should be matched against incomes.

  14. disclosures Minimum disclosures are made in annual financial statements – • Definition of revenue-comprise passenger & cargo revenue, net of discounts, other revenue • Where in P&L accounts commissions are added • Basis on which unredeemed coupons are recognized as revenue. • Total amount of revenue net of discounts • Amount carried in Balance Sheet as deferred income in respect of unearned income.

  15. Contd… Disclosure of segmentation of revenues include- • Passenger revenue • Schedule services • Charter • Cargo revenue • Other incomes

  16. Thank you