tolipanebas
You are sailing very close to the wind
with those types of comments.
The main areas where Airline accounts can
be fudged is where aircraft are owned
directly/benefically leased or the
capitalisation of maintenance.
1. If you maintain a aircraft and the
fix will last 4 years, then you can
write this off over 4 rather than 1
year.
There are no accounting standards which
gives guidelines to these specific
transactions. It is up to the auditors
to ensure what they are doing is prudent.
2. If you think an aircraft will be worth x
after n number of years, then you can
write off the airacrft down to that amount ( bit like who you think a car
is worth after 5 years ). If you get
what you thought it was worth, then
you're ok. Otherwise, you could end up
with a whopping gain/loss.
Again the auditors should check this.
Ryanair's accounts have been heavily
scrutinised over the past number of
years. I do not hear anyone screaming
about their accounting policies.