SIA

Company: Singapore Airlines Limited Key Revenue Generating trading operations Two aboriginal operations contribute to 88.8% of total in operation(p) gross: rider gross sales and bellyhold imparting from SIA Cargo. Passenger communicate amounts to S$8,021.9 million while that of bellyhold receipts is S$1,130.8 million. get along operating receipts is S$10,302.8 million. Revenue Recognition Practices For passenger sales and bellyhold revenue, revenue is recognized when tape drive has been provided. Singapore Airlines (SIA) provides proceeds in the do work of air transport. According to the financial Reporting Standard , revenue is recognized exactly when it is presumable that the stinting benefits associated with the transaction willing flow to the enterprise. In providing the transport for its passengers or incumbrance, the transaction that SIA accomplished has resulted in the flow of economic benefits to the bon ton. Therefore, revenue is r ecognized when transport is provided. As for prepaid tickets, they ar first recognized as sales in fling of carriage (unearned revenue) before beingness recognized as revenue after 2 geezerhood. The primer coat why the while period of 2 years is chosen is because of historical trends that SIA spy during the course of their operations.

Different airlines have diametrical estimates for recognition of revenue for unused tickets. We used Cathay pacific and Siamese Airways, 2 of the top 5 preferred airlines in Asia as our comparison. Thai Airways specified that unused tickets and service orders are recognized as revenue after 2 years . On the opposite hand, Cathay Pa cific states that The value of unflown passe! nger and cargo sales is recorded as unearned conveyancing revenue. We can only conclude that such estimates vary from company to company in the airline industry. Subjectivity of revenue contour We have set Passenger Revenue and Bellyhold Revenue from SIA cargo as the main sources of recognized revenue for the company....If you want to pass water a full essay, order it on our website: OrderEssay.net

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