Revenue and accounting practices.

CFR · 2024-01-01 · US · Title 14

(a) Revenue accounting practices shall conform to the provisions of account 2160, Air Traffic Liability. (b) Each route air carrier shall physically verify the reliability of its passenger revenue accounting practice at least once each accounting year. (c) For those carriers who use the yield or average-fare method to determine earned revenue, the analysis supporting the verification shall include: (1) The cutoff date for the liability to be verified; such cutoff date shall be at the end of a calendar month. (2) The number of months after the cutoff date during which documents were examined to verify the liability; the number of months after the cutoff date during which documents are examined shall not exceed the maximums set forth below: (3) The nature of the documents which were examined for purposes of the verification. (4) The totals for each of the various types of documents examined, on actual or sampling basis. (5) A description of the sampling technique and conversion to totals, if sampling was employed. (6) The amount and basis for all estimates employed in the verification. (7) The amount of resulting adjustments and the quarter in which such adjustments were, or are to be, made in the accounts. (d) For those carriers who use the sales-lift match method to determine earned revenue, the analysis supporting the physical inventory verification shall include: (1) The cutoff date for the liability to be verified; such cutoff date shall be at the end of a calendar month.

official document · source cfr-2024 · id 14:Sec. 2-5