crash course in accounting
Quote:
Cathay announced they are loaning Air China Cargo RMB 1,669 Million (or roughly US $245 Million).
They also announced that construction resumed on the new cargo terminal at HKIA which is a HKD $5.5 Billion investment (~US $708 million).
Waiting to hear if there will be an SLS payback....
Cathay announced they are loaning Air China Cargo RMB 1,669 Million (or roughly US $245 Million).
They also announced that construction resumed on the new cargo terminal at HKIA which is a HKD $5.5 Billion investment (~US $708 million).
Waiting to hear if there will be an SLS payback....
All the profit has gone ! No SLS payback. No profit share. Wonderful !
Guys,
Please don’t jump the gun - yet... just a quick crash course for people who DON'T have an accounting background...
Investments such as planes to Air China, the construction of a new terminal and a cash loan only affect our assets and cash flow - NOT our P&L (profit and loss) statement. Only this statement will determine the success of the company and a possible return of our SLS. Long term investments will be depreciated according to local tax laws and have no immediate effect on P&L (only a long term affect - buildings for example take about 15 to 25 years to depreciate - at least that was what gurus at uni taught me)
I know pilots are in general not good with money but maybe Numero Cruncho and 404 Titan can elaborate a bit more...
AB
P.s.: Another misconception is that "red" figures on our CX Intra welcome page don't necessarily mean we are losing money - they only indicate that we are behind budget (which especially in 2009 contained some very high targets after the successful years of 2007 and 2008).
Last edited by AQIS Boigu; 4th Mar 2010 at 17:42.
Reason: stupid windows spell check didnt work today...