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Full-Text Articles in Business
Proposed Statement Of Position : Accounting For Frequent Travel Award Programs : Proposed Amendment To Aicpa Industry Audit Guide Audits Of Airlines ;Accounting For Frequent Travel Award Programs : Proposed Amendment To Aicpa Industry Audit Guide Audits Of Airlines; Exposure Draft (American Institute Of Certified Public Accountants), 1988, Aug. 31, American Institute Of Certified Public Accountants. Task Force On Airlines
Proposed Statement Of Position : Accounting For Frequent Travel Award Programs : Proposed Amendment To Aicpa Industry Audit Guide Audits Of Airlines ;Accounting For Frequent Travel Award Programs : Proposed Amendment To Aicpa Industry Audit Guide Audits Of Airlines; Exposure Draft (American Institute Of Certified Public Accountants), 1988, Aug. 31, American Institute Of Certified Public Accountants. Task Force On Airlines
Exposure Drafts, Comment Letters, and Statements of Position
This proposed statement of position (SOP) provides guidance on applying generally accepted accounting principles in accounting for frequent travel award programs. Briefly, the proposed SOP recommends the following: 1. An amount based on an allocated revenue value of the free travel awards should be deferred as mileage is accumulated. 2. The amounts deferred should be recognized as revenue when free travel awards are used. 3. An adjustment should be made to reflect the cumulative effect of the change in accounting principle when the SOP is first applied.