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Essay Details:
Essay text:
Revenue may have not been earned at time of recognition.
UAL (United): Revenue is recognized when the credits are sold
• Revenue has been realized, but not yet earned as the service has not been provided
Delta Airlines: Revenue is recognized as operating revenue at time of sale
• This is not part of operating revenue as it is not the primary line of business.
• At time of sale, revenue is realized but has not been earned yet
US Airways Group: Revenue is recognized as other operating revenue when credits are sold
• It is better to place this revenue under other operating revenues
• When credit is sold, revenue has been realized, but not yet earned...
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