Accounting for Frequent Fliers Case Solution

Posted by markwahl barg on August 2nd, 2018

Accounting for Frequent Fliers Case Solution

Case Solution

Air travel frequent flier programs offer people the chance to earn free plane tickets by accumulating mileage. Accounting and confirming the obligations of air carriers and the price of frequent flier programs boosts difficult measurement issues. In 1991, the U.S. Investments and Exchange Commission started to want air carriers to reveal the amount of free plane tickets program people required. The case enables estimations from the cost and obligations from the US. Air Lines program.

Excel Calculations

·         Liability in case of Incremental Costs      

·         Liability in case of Deferred Revenue     

·         Incremental Revenue/Loss Analysis       

·         Entry for recording Deferred Revenue                  

·         Entry for recognizing Deferred Revenue                              

·         Equvilant Final Entry                     

Like it? Share it!


markwahl barg

About the Author

markwahl barg
Joined: November 12th, 2016
Articles Posted: 1,987

More by this author