The American Institute of CPAs has issued an exposure draft of a proposed audit and accounting guide for the airline industry and is looking for comments.

The guide attempts to address many of the recent accounting issues that have emerged in the airline industry and includes chapters dedicated to air cargo and regional carriers.

Among the issues covered are the timing of recognition of ticket change fees, and deferred revenue methods of accounting for frequent flyer programs. The guide also deals with "revenue breakage" from unused but valid tickets, and manufacturer purchase incentives from airline equipment makers.

Auditing guidance in two of the chapters has been left out of the exposure draft, however

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