Air Canada: Financial Accounting

Topics: Balance sheet, Depreciation, Generally Accepted Accounting Principles Pages: 4 (1820 words) Published: November 2, 2014

After reading this paper you will be able to:
Know about Air Canada briefly.
Account for the initial valuation of capital assets, costs subsequent to acquisition, and the deposals of capital assets with reference to Air Canada. Define cash and accounts receivables and explain the recognition and valuation of receivables. Identify and compare depreciation methods.

Table of Content
Task 1: Internal Control and Cash
Task 2: Receivables
Task 3: Noncurrent Assets
Task 4: Recommendations
Air Canada is counter as Canada’s flag carrier. It is Canada’s largest international, domestic and US transborder airline. It is also the largest supplier of scheduled passenger services in the transboreder market, the US-Canada market, the Canadian market and in the international market from and to Canada. Air Canada carried 35.8 million passengers in 2013. Air Canada was founded in 1936 and it provides services to over 178 destinations worldwide. Air Canada is the founding member of Star Alliance and it counts as the world’s seventh largest airline by fleet size, with a fleet of 170 aircrafts of different types. Since Air Canada is a part of the Star Alliance, then it can provide services to approximately 1,328 destinations in around 195 different countries. Air Canada has subsidiaries, which help it generate revenue like Air Canada Cargo. Air Canada Cargo provides cargo services to over 150 international destinations as well as Canadian and US transborder destinations. The Air Canada group positions itself in a highly competitive leisure market, with a competitive cost structure and a strong value proposition. I am going to analyze the liquidity and internal controls in Air Canada for the year 2013, using their annual financial report of the year 2013. I will analyze their non current assets and workout the asset turnover. I will also give some recommendations to the airline in order to tighten their internal...

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