The key considerations for airlines to focus on to drive their IFRS 15 implementation to the finish line.
In a matter of months, the new revenue recognition standard – IFRS 15 – will change the way airlines account for air tickets, cargo airway bills, loyalty
points and change fees.
Airlines are likely to experience the impact of IFRS 15 in the following areas.
Other areas impacted may include accounting for change fees, travel vouchers and holiday packages.
Unexpected changes may also arise as the new standard is more detailed than the existing revenue requirements. Therefore, it’s essential that the accounting impacts are considered in detail, as well as the broader business impacts – e.g. the impact on tax and employee bonus schemes.
Our IFRS 15 for Airlines – Are you good to go? application guidance provides more detailed and practical insight, using examples to illustrate how airlines might apply the new requirements.
Please speak to your usual KPMG contact if you would like to find out more about how KPMG can help your business.
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