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Although FFPs have a relatively low estimated value of between US$0.01 and US$0.10 each, the large number of kilometres flown by a multitude or airline customer's means that to any one airline FFPs can represent a significant liability (WebFlyer 2006).
Because FFPs represent a present obligation for an airline to provide customers with air travel at a later date, they can be considered a liability (Bowman 1995, AASB 2004). The complexity in recording these liabilities comes from the fact that the liability has to be estimated, as FFPs can be realised any time before they expire (IATA & KPMG 1995)...
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