Garuda defends treatment of IFEC deal in 2018 results
Garuda Indonesia has defended its decision to recognise US$242m of future revenue from an inflight Wi-Fi and entertainment deal with Mahata Aero Teknologi as an operating item in its 2018 financial results. The carrier explained that based on Indonesian accounting standards, it is able to book income from services should 4 specific conditions were fulfilled: ability to measure income gained from the sale and its associated cost of the transaction, economic benefits to be gained by the company, and the ability to track progress of a particular transaction at the end of the financial period. As a result, it opted to book the $242m income from the 15-year deal in 2018. While Garuda has yet to receive payment from Mahata, the monies it was due to receive have become receivables owed to the airline. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-05-13/sky/garuda-defends-treatment-of-ifec-deal-in-2018-results
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Garuda defends treatment of IFEC deal in 2018 results
Garuda Indonesia has defended its decision to recognise US$242m of future revenue from an inflight Wi-Fi and entertainment deal with Mahata Aero Teknologi as an operating item in its 2018 financial results. The carrier explained that based on Indonesian accounting standards, it is able to book income from services should 4 specific conditions were fulfilled: ability to measure income gained from the sale and its associated cost of the transaction, economic benefits to be gained by the company, and the ability to track progress of a particular transaction at the end of the financial period. As a result, it opted to book the $242m income from the 15-year deal in 2018. While Garuda has yet to receive payment from Mahata, the monies it was due to receive have become receivables owed to the airline. <br/>
