I can understand the difference between asset and liabilty........
You obviously understand this better than me then, I cannot see though how you have it as a liability when selling as a share but not when selling the whole aircraft -when that wear would be reflected in the aircraft price.
Also, if I were buying a company for example I would be looking at assets
and liabilities and valuing the company on the whole. My understanding is that
Normal practice would have the wear and tear reducing the market value on an asset with any cash definitely coming in on the asset side, either that or it is the wear and future engine purchase that is the liability - but that liability exists with or without the fund and the fund itself is
still an asset. Also this is not a good way to run a group since it is more likely to push the group into selling the whole aircraft then split up the cash fund - but how can you split it up, because as a liability it must cost you money, not make it for you.
