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Continental Airlines Revenue Recognition

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Continental Airlines Revenue Recognition
Assignment 4

Case 7.2 Revenue Recognition Associated with Frequent Flier Miles
Continental Airlines: Revenue is deferred and recognized when transportation is provided
• Revenue is realized, and earned. The carrier has performed its duty, the service has been preformed. The amount of the claim is known
AMR (American): Revenue is deferred and recognized over the period approximating mileage credits are used
• Because there is no actual way of knowing when/if mileage will be used, it is not appropriate. 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
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