An airline's property and equipment consist of three primary categories: flight equipment, ground property and equipment, and equipment under capital leases. This chapter focuses on the accounting for flight equipment, which, due to its unique nature, poses certain accounting issues that are not encountered in other industries. It also includes a discussion of leases and other financing structures historically used by the airline industry to finance aircraft, airport facilities, and other assets because these structures often have unique accounting issues. The chapter further discusses factors that influence inherent risk related to acquiring and maintaining property and equipment. For marketing purposes, when a new aircraft or engine model is developed, the manufacturers may have to induce their launch customer by granting more purchase incentives than would otherwise be granted for a well established model. It is important for the manufacturers to have an established customer base for the product in order to market it to others.


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    Titel :

    Acquiring and Maintaining Property and Equipment


    Erschienen in:

    Erscheinungsdatum :

    2016-10-28


    Format / Umfang :

    40 pages




    Medientyp :

    Aufsatz/Kapitel (Buch)


    Format :

    Elektronische Ressource


    Sprache :

    Englisch




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