Index
Perspectives on International Financial Reporting and Auditing in the Airline Industry
ISBN: 978-1-78973-760-8, eISBN: 978-1-78973-759-2
ISSN: 1479-3512
Publication date: 3 February 2022
This content is currently only available as a PDF
Citation
(2022), "Index", Öztürk, C. and Baker, C.R. (Ed.) Perspectives on International Financial Reporting and Auditing in the Airline Industry (Studies in Managerial and Financial Accounting, Vol. 35), Emerald Publishing Limited, Leeds, pp. 175-185. https://doi.org/10.1108/S1479-351220220000035006
Publisher
:Emerald Publishing Limited
Copyright © 2022 Emerald Publishing Limited
INDEX
Accounting
diversity
, 5
framework
, 131
measurement
, 5
period for data
, 61
Accounting for Leases of Aircraft Fleet Assets
, 6, 54
Accounting policy
, 22, 24
analysis of accounting policy options related to airline industry
, 45–47
choices
, 22
comparability of financial information
, 24–27
data
, 30
findings
, 30
literature review on accounting policy choice in airline industry
, 28–30
observations on IAS 1 presentation of financial statements
, 30–41
observations on IAS 2 inventory, IAS 16 PPE, IAS 38 intangible assets, and IAS 40 investment property
, 43–45
observations on IAS 7 statement of cash flows
, 41–43
overall analysis of findings
, 47–49
policy options
, 22–24
research methodology
, 30
Accounting Policy Task Force
, 6
Accounting Standards for Business Enterprises of China (ASBE)
, 10
Aero Mexico
, 90, 92, 94, 95
Aeromexico
, 9–10
Africa
case of airlines from
, 65
entity-wide disclosures
, 105–106
factors used to identify airline’s reportable segments
, 102
financial reporting in airline industry in
, 14
identity of CODM
, 106–107
income and expense items disclosed
, 104–105
nature and number of segments reported by airlines
, 101
observations on segment reporting in
, 101
proportion of total revenues represented by separately reportable segments
, 103
reporting currency
, 104
segmental cash flow information
, 105
segmental performance measures
, 103
total assets, total liabilities, and other asset items for each reportable segment
, 104
types of products and services reportable segment derives revenues
, 102–103
Air Canada
, 9, 94
Air France–KLM (AF-KLM)
, 53, 139–140
accounting period for data
, 61
effect of adoption of IFRS 15 in airline industry
, 63–66
analysis of disclosures under IFRS 16
, 77–78
constraint of research
, 62
data
, 61
effects of IFRS 15 and IFRS 16 on income statement
, 70–71
effects of IFRS 15 and IFRS 16 on statement of financial position
, 66–70
first-time adoption of IFRS 15 and IFRS 16
, 63
effect of IFRS 15 and IFRS 16 on ratios
, 71–77
IFRS 15 revenue from contracts with customers
, 52–54
IFRS 16 Leases
, 54–55
IFRS 15 and IFRS 16 effects on statement of cash flows
, 71
literature review on compliance level of disclosures of IFRS 15 and IFRS 16
, 60–61
literature review on cumulative effect of IFRS 15 and IFRS 16
, 59
literature review on effect of IFRS 15
, 55
literature review on effect of IFRS 16
, 55–59
mandatory disclosures of
, 79
overall analysis of airlines
, 66
research methodology
, 62
steps of revenue recognition
, 53
voluntary Disclosures of
, 80
Air India, SpiceJet
, 14
Air Mauritius case
, 140
Air Partner
, 66
Air Transat
, 9, 94
Airline industry
, 4
analysis of accounting policy options related to
, 45–47
determinants of IFRS adoption in
, 16
financial reporting framework at present
, 9–16
financial reporting framework in past
, 7–9
financial reporting in
, 5–6
jurisdictional versions of IFRS in
, 16–19
literature review on accounting policy choice in
, 28–30
literature review on IFRS 8 segment reporting in
, 89
literature review on international auditing in
, 135–136
Airline(s)
airline-related financial information
, 5
nature and number of segments reported by
, 84–85
passenger
, 53
All Nippon Airways (ANA)
, 14
Americas
case of airlines from
, 63
entity-wide disclosures
, 93–95
factors used to identify airline’s reportable segments
, 90
financial reporting in airline industry in
, 9–10
identity of CODM
, 95
income and expense items disclosed
, 93
nature and number of segments reported by American airlines
, 90
observations on segment reporting in
, 90
proportion of total revenues represented by separately reportable segments
, 92
reporting currency
, 92
segmental cash flow information
, 93
segmental performance measures
, 92
total assets, total liabilities, and other asset items for each reportable segment
, 92
types of products and services from which each reportable segment derives revenues
, 91
Asia-Pacific Region
case of airlines from
, 65
entity-wide disclosures
, 111–112
factors used to identify airline’s reportable segments
, 107
financial reporting in airline industry in
, 14–16
identity of CODM
, 112
income and expense items disclosed
, 110
nature and number of segments reported by airlines
, 107
observations on segment reporting in
, 107
proportion of total revenues represented by separately reportable segments
, 108
reporting currency
, 109
segmental cash flow information
, 110
segmental performance measures
, 109
total assets, total liabilities, and other asset items for each reportable segment
, 109–110
types of products and services from which each reportable segment derives revenues
, 107–108
Assets
, 25
depreciable
, 49
geographical allocation of
, 88, 95, 122
intangible
, 27, 49
items for each reportable segment
, 86
net
, 33
reporting
, 36
total
, 33, 86
Audit firms
, 130–131
in audit reports of airlines
, 138–139
Audit opinions
, 131
in audit reports of airlines
, 140
“Audit quality”
, 139
Audit reports of airlines
audit firms in
, 138–139
audit opinions in
, 140
auditor types in
, 139–140
content analysis of reporting KAMs in
, 146–150
emphasis of matter and other matter paragraphs in
, 140–141
material uncertainty related to going-concern in
, 141–142
materiality in
, 150–154
Auditing Act of Finland
, 129
Auditing practices
, 5
Auditor types
, 130–131
in audit reports of airlines
, 139–140
Australian Accounting Standards
, 14
Australian Auditing Standards
, 130
Azul Brazilian
, 94
Azul Brazilian Airlines
, 9
Balance sheet
, 24–25, 30
capital employed
, 36
format of
, 32
net assets
, 34–35, 37
title of
, 31
total assets
, 33–34
Bangkok Airways
, 14
Big 4 audit firms
, 131, 138–139
Board of Directors (BoD)
, 88–89
Business units
, 84
Cargojet Airways
, 9
Cash flow statement
, 26
observations on IAS 7 statement of cash flows
, 41–43
Cathay Pacific Airlines
, 10
Chief Executive Officer (CEO)
, 88
Chief Operating Decision Maker (CODM)
, 82–83, 86
in Americas
, 95
in Asia-Pacific
, 112
in China and Northern Asia
, 117
in Europe
, 101
identity of
, 88–89
in Middle East and Africa
, 106–107
Chief Operating Officer
, 88
China
case of airlines from
, 65
entity-wide disclosures
, 116–117
factors used to identify airline’s reportable segments
, 113
financial reporting in airline industry in
, 10–11
identity of CODM
, 117
income and expense items disclosed
, 115
nature and number of segments reported by airlines
, 112
observations on segment reporting in
, 112
proportion of total revenues represented by separately reportable segments
, 113–114
reporting currency
, 114
segmental cash flow information
, 115
segmental performance measures
, 114
total assets, total liabilities, and other asset items for each reportable segment
, 114–115
types of products and services from which each reportable segment derives revenues
, 113
Combination
, 84
Company materiality
, 154, 155
Comparability of Financial Statements Project
, 22
Comparative analysis of IFRS accounting policy
, 24
Competence
, 139
Comprehensive income
, 25, 38–40
Content analysis of reporting KAMs in audit report of airlines
, 146–150
Contingent-liability method
, 28
Copa Airlines
, 8, 9, 94
Cost model
, 27, 49
Croatia Airlines
, 13
Cumulative catch-up method
, 63
Customer Loyalty Programmes
, 28
Deferred-revenue approach
, 28
Departure method
, 88
Deployment approach
, 88
Depreciable assets
, 49
Depreciation
, 49
costs
, 58
Destination method
, 88
Direct-to-equity approach
, 28
Diversity
, 5–6
in accounting policy options
, 28–29
in financial reporting
, 24
Dividend
, 26–27
Double-declining
, 29
Earnings Before Interest, Tax, Depreciation, Amortization (EBITDA)
, 55–56, 70, 75, 85
Earnings Before Interest, Tax, Depreciation, Amortization and Rent (EBITDAR)
, 56, 70, 75, 92
Earnings before interest and tax (EBIT)
, 85
Economic deregulation of airlines
, 4
Emirates
, 8
Entity-wide disclosures
, 87–88
in Americas
, 93–95
in Asia-Pacific
, 111–112
in China and Northern Asia
, 116–117
in Europe
, 99–101
in Middle East and Africa
, 105–106
Equity
accounting
, 26
method
, 29
Europe
case of airlines from
, 63–65
entity-wide disclosures
, 99–101
factors used to identify airline’s reportable segments
, 95
financial reporting in airline industry in
, 11–14
identity of CODM
, 101
income and expense items disclosed
, 98–99
nature and number of segments reported by airlines
, 95
observations on segment reporting in
, 95
proportion of total revenues represented by separately reportable segments
, 96
reporting currency
, 98
segmental cash flow information
, 99
segmental performance measures
, 97
total assets, total liabilities, and other asset items for each reportable segment
, 98
types of products and services from which each reportable segment derives revenues
, 96
European Commission (EC)
, 129
European Economic Area (EEA)
, 13
European Union (EU)
, 11
Expense items disclose
, 86–87
Fair value model
, 27, 49
“Financial debt” account
, 69
Financial disclosure
, 5
Financial reporting (See also International auditing)
accounting period for data
, 7
in airline industry
, 4–5
considering diversity, harmonization, and airline industry
, 5–6
constraint of research
, 7
credibility
, 139
data
, 6–7
findings
, 7
framework in airline industry at present
, 9–16
framework in airline industry in past
, 7–9
observations related to IFRS adoption from perspective of airlines’ financial statements
, 16–19
research methodology
, 7
Financial Reporting Council (FRC)
, 134
Financial statements
, 128
observations on IAS 1 presentation of
, 30–41
observations related to IFRS adoption from perspective of airlines
, 16–19
Financial Supervisory Commission (FSC)
, 10–11, 18
Financing
, 26
cash flows
, 42, 43
leases
, 147
First-in first-out (FIFO)
, 23
Frequent-Flyer Programme Accounting
, 28
Full retrospective method (FRM)
, 61, 63
Garuda Indonesia
, 14
Geographical allocation of assets
, 88, 95, 122
GOL Linhas Aereas
, 8, 9, 38, 140, 147
Good auditing practice in Finland
, 129
Gross profit
, 92
Group materiality
, 154, 155
Harmonization
, 5–6
Hedge accounting, KAMs related to
, 149
Hong Kong Financial Reporting Standards (HKFRS)
, 10
Hong Kong Institute of Certified Public Accountants (HKICPA)
, 10
Hong Kong Stock Exchange (HKSE)
, 10
IAS 1
, 27
observations on IAS 1 presentation of financial statements
, 30–41
IAS 16 (PPE)
, 27, 43–45
IAS 2 (inventory)
, 27, 43–45
IAS 36 (impairment of assets)
, 60
IAS 38 (intangible assets)
, 27, 43–45, 60
IAS 40 (investment property)
, 27, 43–45
IAS 7
, 27
observations on IAS 7 statement of cash flows
, 41–43
Icelandair
, 13
Identity of CODM
, 88–89
IFRIC 13 (Customer Loyalty Programmes)
, 52
IFRIC 15 (Agreements for Construction of Real Estate)
, 52
IFRIC 18 (Transfers of Assets from Customers)
, 52
IFRS 15 (revenue from contracts with customers)
, 52
effect of adoption of IFRS 15 in airline industry
, 63–66
effects on income statement
, 70–71
effects on statement of financial position
, 66–70
first-time adoption of
, 63
literature review on cumulative effect of IFRS 15 and IFRS 16
, 59
literature review on effect of IFRS 15
, 55
IFRS 16 (Leases)
, 54–55
analysis of disclosures under IFRS 16
, 77–78
effects on income statement
, 70–71
effects on statement of financial position
, 66–70
first-time adoption of
, 63
IFRS 15 and IFRS 16 effects on statement of cash flows
, 71
literature review on cumulative effect of IFRS 15 and IFRS 16
, 59
literature review on effect of IFRS 16
, 55–59
IFRS 3 (Business Combinations)
, 60
IFRS 8 (operating segments)
, 82–84
analysis of segment reporting in global context
, 117–123
data
, 89
entity-wide disclosures
, 87–88
factors used to identify airline’s reportable segments
, 85
findings
, 90
identity of CODM
, 88–89
income and expense items disclosed
, 86–87
items of disclosures required by IAS 14 and IFRS 8
, 83
literature review on IFRS 8 segment reporting in airline industry
, 89
nature and number of segments reported by airlines
, 84–85
observations on segment reporting in Americas
, 90–95
observations on segment reporting in Asia-Pacific
, 107–112
observations on segment reporting in China and Northern Asia
, 112–117
observations on segment reporting in Europe
, 95–101
observations on segment reporting in Middle East and Africa
, 101–107
proportion of total revenues represented by separately reportable segments
, 85
reporting currency in segment reporting
, 86
research methodology
, 89–90
segmental cash flow information
, 87
segmental performance measures
, 85–86
total assets, total liabilities, and other asset items for each reportable segment
, 86
types of products and services from which each reportable segment derives revenues
, 85
Income
IFRS 15 and IFRS 16 effects on income statement
, 70–71
items disclose
, 86–87
statement
, 37–38
Incremental-cost method
, 28
Independence
, 139
Indian Accounting Standards (Ind AS)
, 14
Indonesian Accounting Standards
, 14
Industry Accounting Working Group (IAWG)
, 6, 29, 53–54
Information about major customers
, 88
Intangible assets
, 27, 49
Interest expenses
, 58
Interest paid
, 26
International Accounting Standards Committee
, 9, 22, 52
International Air Transport Association (IATA)
, 6, 28, 52, 84
International auditing (See also Financial reporting)
ISAs
, 128–130
observations on communicating concept of materiality in planning and performing audit under
observations on material uncertainty related to going concern considering ISA
, 132–133
observations related to audit firms and types of auditors
, 130–131
observations related to auditors’ opinions and related paragraphs of audit report
, 131–132
observations related to content analysis of KAMs in audit report considering ISA 701
, 133–134
observations related to elements of describing KAMs in audit report considering ISA 701
, 133
International Auditing and Assurance Standards Board (IAASB)
, 128
International Federation of Accountants (IFAC)
, 128
International Financial Reporting Standards (IFRS)
, 5, 22, 82, 128
as adopted by Republic of Korea
, 14
adoption
, 14
determinants of IFRS adoption in airline industry
, 16
effects on statement of cash flows
, 71
jurisdictional versions of IFRS in airline industry
, 16–19
New Zealand equivalents to
, 14
observations related to IFRS adoption from perspective of airlines’ financial statements
, 16
International Standards on Auditing (ISAs)
, 128–129
ISA 700
, 131
ISA 705
, 131
ISA 706
, 131
material uncertainty related to going concern considering
, 132–133
Inventory
, 27
Investing
, 26
Investment property
, 27
ISA 701
, 134–135
analysis of elements of describing KAMs in audit report
, 142–146
audit firms in audit reports of airlines
, 138–139
audit opinions in audit reports of airlines
, 140
auditor types in audit reports of airlines
, 139–140
content analysis of reporting KAMs in audit report of airlines
, 146–150
data
, 136–137
emphasis of matter and other matter paragraphs in audit reports of airlines
, 140–141
findings
, 138
literature review on international auditing in airline industry
, 135–136
material uncertainty related to going-concern in audit reports of airlines
, 141–142
observations on materiality in planning and performing audit under
, 134–135
observations related to content analysis of KAMs in audit report considering
, 133–134
observations related to elements of describing KAMs in audit report considering
, 133
research methodology
, 138
Israeli Auditing Standards
, 129
Japan Airlines
, 14
Japan GAAP
, 14
Jet airplanes
, 4
“Jumbo jets”
, 4
Jurisdictional IFRS
, 14
Key audit matters (KAMs)
, 132–133, 135–136, 142–143
analysis of elements of describing KAMs in audit report
, 142
content analysis of reporting KAMs in audit report of airlines
, 146
materiality in audit reports of airlines
, 150–154
observations related to content analysis of KAMs in audit report considering ISA 701
, 133–134
observations related to elements of describing KAMs in audit report considering ISA 701
, 133
patterns of diversified elements of describing KAMs in auditor context
, 144–146
patterns of elements of describing KAMs in global context
, 143–144
rare KAMs
, 149
related to aircraft assets and other PPE items
, 147–148
related to hedge accounting
, 149
related to lease accounting
, 147
related to revenue recognition
, 146–147
very rare KAMs
, 149–150
Korean Air
, 86
Korean Standards on Auditing
, 130
LATAM Airlines Group
, 9
Latam
, 94
Lease accounting, KAMs related to
, 147
“Lease debt” account
, 69
Liquidity ratios
, 71–73
Location method
, 88
“Location” method
, 122
Malaysian Financial Reporting Standards (MFRS)
, 14
Mandatory disclosures of AF-KLM
, 79
Material uncertainty
related to going concern considering ISA
, 132–133
related to going-concern in audit reports of airlines
, 141–142
Materiality
analysis of rationales behind group and company materiality benchmarks
, 152
in audit reports of airlines
, 150
declaration of group and company materiality in audit reports
, 151–152
declaration of materiality related information in audit reports
, 150–151
declaration of performance materiality in audit reports
, 152–154
monetary and percentage value of group, company, and performance materiality
, 154, 155
in planning and performing audit under ISA 701
, 134–135
scope of audit
, 154–156
Matrix geographic regions
, 84
Matrix line of business
, 84
Mauritius Financial Reporting Act
, 140
Middle East
case of airlines from
, 65
entity-wide disclosures
, 105–106
factors used to identify airline’s reportable segments
, 102
financial reporting in airline industry in
, 14
identity of CODM
, 106–107
income and expense items disclosed
, 104–105
nature and number of segments reported by airlines
, 101
observations on segment reporting in
, 101
proportion of total revenues represented by separately reportable segments
, 103
reporting currency
, 104
segmental cash flow information
, 105
segmental performance measures
, 103
total assets, total liabilities, and other asset items for each reportable segment
, 104
types of products and services from which each reportable segment derives revenues
, 102–103
Mixed geographic regions
, 84
Mixed line of business
, 84
Modified retrospective method (MRM)
, 63
National Accounting Standards
, 14
National Audit Office
, 138
Net assets
, 33
Network approach
, 88
New York Stock Exchange (NYSE)
, 8
No disclosure method
, 88
Non-Big 4 audit firms
, 131
Northern Asia
case of airlines from
, 65
entity-wide disclosures
, 116–117
factors used to identify airline’s reportable segments
, 113
financial reporting in airline industry in
, 10–11
identity of CODM
, 117
income and expense items disclosed
, 115
nature and number of segments reported by airlines
, 112
observations on segment reporting in
, 112
proportion of total revenues represented by separately reportable segments
, 113–114
reporting currency
, 114
segmental cash flow information
, 115
segmental performance measures
, 114
total assets, total liabilities, and other asset items for each reportable segment
, 114–115
types of products and services from which each reportable segment derives revenues
, 113
Norwegian Air
, 13
One-statement approach
, 23
OneWorld
, 13
Operating cash flow
, 26
Operating entities
, 84
Operating profit
, 26, 85
Origin method
, 88
Performance materiality
, 154, 155
Philippine Standards on Auditing
, 130
Philippines Financial Reporting Standards
, 14
Prevailing audit regulations in Spain
, 129
Professional ethics
, 129
Professional standards applicable in France
, 129
Profitability
indicators
, 4
ratios
, 75–77
Property, plant, and equipment (PPE)
, 23, 27, 43–45
Proportionate consolidation
, 29
Public Company Accounting Oversight Board (PCAOB)
, 128
Pure geographic regions
, 84
Pure line of business
, 84
Qatar Airways Company (QAC)
, 59
Rare KAMs
, 149
Ratio analysis
, 77
Reportable segments
factors used to identify airline’s reportable segments
, 85
proportion of total revenues represented by separately reportable segments
, 85
types of products and services from which each reportable segment derives revenues
, 85
Reporting
assets
, 36
currency in segment reporting
, 86
Revaluation model
, 27
Revenue
, 52, (See also Assets)
from contracts with customers
, 28
from external customers for products and services
, 87, 93–94, 121
by geographical areas
, 87–88, 94, 122
KAMs related to revenue recognition
, 146–147
ROA
, 57–59, 75, 77
ROE
, 57–59, 75, 77
Romanian Accounting Standards (RAS)
, 131
Royal Jordanian Airlines Company (RJ)
, 59
Ryanair
, 12
Saudi Airlines Catering (SAC)
, 59
Segment information
, 82
“Segment profit”
, 92
Segment related disclosures
, 82
Segment reporting
, 82, (See also Financial reporting)
analysis in global context
, 117–123
other asset items for each reportable segment
, 86
Segmental cash flow information
, 87
in Americas
, 93
in Asia-Pacific
, 110
in China and Northern Asia
, 115
in Europe
, 99
in Middle East and Africa
, 105
Segmental performance measures
, 85–86
in Americas
, 92
in Asia-Pacific
, 109
in China and Northern Asia
, 114
in Europe
, 97
in Middle East and Africa
, 103
Segments primarily include geographic regions
, 84
Segments primarily include lines of business
, 84
SIC-31 Revenue–Barter Transactions Involving Advertising Services
, 52
Singapore Financial Reporting Standards (International) (SFRS(I))
, 14
Singapore Standards on Auditing
, 130
Single segment
, 84
Skyteam
, 13
Solvency ratios
, 73–75
Sri Lanka Auditing Standards
, 130
Sri Lanka Financial Reporting Standards
, 14
Star Alliance
, 13
Statement of comprehensive income (SOCI)
, 25, 39, 40, 48
Statement of profit or loss and other comprehensive income (SOPLOCI)
, 39–40
Statement of Recognized Income and Expense (SORIE)
, 23, 40
Straight-line method
, 29, 45, 49
Thai Airways International
, 14–15
Thai Financial Reporting Standards
, 14
Total assets
, 33, 86
Total liabilities
, 86
Traditional income statement
, 25, 36
Translation of Long-Term Foreign Currency Borrowings
, 28
Turkish Auditing Standards (TAS)
, 129
Turkish Financial Reporting Standards (TFRS)
, 11
Two-statement approach
, 23
Uniformity
, 24, 28–29, 48
United Arab Emirates (UAE)
, 8–9
United States Generally Accepted Accounting Principles (US GAAP)
, 5
Units of production
, 29
US Securities Exchange Commission (SEC)
, 9
VietJet
, 15
Vietnamese Accounting Standards
, 14
Volaris
, 9, 94, 95
Voluntary disclosures of AF-KLM
, 80
Weighted average (WA)
, 23
WestJet
, 9, 140
Whole business
, 84, 90, 95, 101, 107, 112, 117
- Prelims
- Part I: International Financial Reporting
- Chapter 1: Overview of Financial Reporting in the Airline Industry
- Chapter 2: Some Observations on IFRS Accounting Policy Choices: The Case of the Airline Industry
- Chapter 3: Some Observations on IFRS 15 and IFRS 16 in the Airline Industry: The Case of Air France – KLM
- Chapter 4: Some Observations on IFRS 8 Operating Segments: The Case of the Airline Industry
- Part II: International Auditing
- Chapter 5: Some Observations on International Auditing: The Case of the Airline Industry
- References
- Index