Generally Accepted Accounting Principles
According to GAAP (Generally Accepted Accounting Principles) revenue should be recognized when it is
1) earned and
2) realized (collected) or realizable (collectible)
You can find the revenue recognition policy of Turkish Airlines at http://investor.turkishairlines.com/documents/ThyInvestorRelations/download/finansal/2015_12_Months_Financial_Report_USDv01.pdf (see footnote item 2.3.2 Revenue) and revenue recognition policy of American Airlines at
http://phx.corporate-ir.net/phoenix.zhtml?c=117098&p=irol-reportsannual
(see page 123)
Write a brief analysis report comparing revenue recognition policies of these companies.
First, please copy the policies directly from the reports as the beginning part of your report.. Then, you can build your analysis (Max 300 words) by answering the following questions….
1. What are the differences and similarities between two policies ?
2. What would be the possible reasons of differences or similarities ?
3. If you see any difference, what would be the possible economic consequences of such differences ?
PLEASE keep it simple, concise, and structured.
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