SIA

Company: Singapore Airlines Limited Key Revenue Generating trading operations Two aboriginal operations contribute to 88.8% of total operational gross: rider sales and bellyhold imparting from SIA Cargo. Passenger returns amounts to S$8,021.9 million while that of bellyhold taxation is S$1,130.8 million. constitutional operating revenue enhancement is S$10,302.8 million. Revenue Recognition Practices For rider sales and bellyhold revenue, revenue is recognized when go has been provided. Singapore Airlines (SIA) provides emolument in the do work of air transport. According to the financial Reporting Standard , revenue is recognized but when it is probable that the economic 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 recognized when transport is provided. As for prepaid tickets, they ar first recognized as sales in onward motion of carriage (unearned revenue) before beingness recognized as revenue after 2 geezerhood. The primer coat why the eon period of 2 years is chosen is because of historical trends that SIA find during the course of their operations.

Different airlines have diametrical estimates for recognition of revenue for unused tickets. We used Cathay pacific and siamese connection 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 new(prenominal) hand, Cathay Pacific states that The value of unfl! own passenger 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 principal(prenominal) 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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