The airline industry is capital intensive and the accounting for aircraft assets has a significant impact on financial results. Accounting for aircraft acquisition and depreciation is complex. While IAS 16 provides clear accounting principles, their application to aircraft and related assets often requires judgment by airlines, which need to be revisited each reporting period. This ADG offers accounting guidance and observed practice under IFRS in relation to aircraft acquisition cost and depreciation.
To download the PDFs, please follow this link to the IATA website.