The case highlights issues arising from changes in accounting policies followed by Jet Airways during the accounting year. During the first quarter ended June 30, 2008, Jet Airways changed its accounting policy of charging depreciation from written down value method to straight line method on particular aircraft, which resulted in a writeback of excess depreciation of Rs. 9159 million.
Now You See It, Now You Do Not The Case Of Jet Airways And Its Accounting Policies Case Study Solution
The company adopted an accounting policy that capitalized and deferred the losses arising out of specific foreign currency exchange difference rather than charging it to the income statement. They had also revalued some of their assets in the preceding year. Airline businesses have considerable assets that are fixed, and therefore the accounting for depreciation is important. The accounting policy choice the business makes affects not only profits and asset values for the present year but those of future years.
PUBLICATION DATE: January 01, 2010 PRODUCT #: IMB331-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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