Passenger Revenue Accounting客运收入会计.pptVIP

1 ________________Passenger Revenue AccountingPRA 101S Prepared by: Goss Associates, LLC Table of Contents Introduction to Passenger Revenue Accounting (PRA) Recording/Auditing Revenue - Pending Delivery  Recognizing/Verifying Revenue - Delivered Risk from Poor Accounting Control Introduction to Passenger Revenue Accounting The airline industry has developed a sophisticated distribution system that integrates worldwide airline sales and reservations to provide a standard travel document, the airline ticket. When a transaction is recorded, a contract or ticket is created between passenger and airline: This ticket provides a wealth of information and services including: A promise to provide airline services Airline reservation information Travel documentation “One price” regardless of the number of airlines involved in the itinerary Introduction to Passenger Revenue Accounting Revenue is the financial term used to describe the accounting event that occurs when a promised service is either Pending delivery revenue Unearned Passenger Revenue - Money collected or a receivable established at the time of ticketing (contract) is recorded as an unearned passenger revenue liability on the balance sheet. The AUDIT COUPON is used to record these transactions.  or Delivered revenue Earned Revenue Reclassified Revenue Other Airline Payable Risk from Poor Accounting Control Passenger revenue accounting provides the required controls to identify improper accounting transactions, which if they go undetected, an airline risks loss of significant revenue and cash. Effective policies and procedures can identify the following transaction risks: Inaccurate profits/loss statement from misstated earned revenue Out of period revenue recognition. As an example, electronic ticket files, VCR’s, are mishandled. Earned revenue would not be recognized until the ticketing time limit expires, normally 12 months. Incomplete or inaccurate procedures are used to calculate