Question
I forgot what specifically I am supposed to be looking at. Here is the question. AF indicates that Sales related to air transportation are recognized
I forgot what specifically I am supposed to be looking at. Here is the question.
AF indicates that "Sales related to air transportation are recognized when the transportation service is provided," so passenger and freight tickets "are consequently recorded as 'Deferred revenue upon issuance date'."
- Examine AF's balance sheet. What is the total amount of deferred revenue on ticket sales as of December 31, 2017?
- When transportation services are provided with respect to the deferred revenue on ticket sales, what journal entry would AF make to reduce deferred revenue?
- Does AF's treatment of deferred revenue under IFRS appear consistent with how these transactions would be handled under U.S. GAAP?
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Business Law and the Legal Environment
Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril
8th edition
1337404667, 1337404662, 9781337404532, 1337404535, 978-1337736954
