Flights of Fancy

The current level of diversity in airline accounting practices is explored based on the airline accounting guidelines (AAG) promulgated for the six problem areas in airline accounting. Analysis of eighty airlines’ 1997/1998 annual reports from fifty-two countries shows variation in the level of diversity of measurement and disclosure practices. Airlines’ accounting measurement policy for unrealised foreign exchange differences, maintenance cost and lease accounting remains diverse. However, only the disclosure of frequent flyer accounting is problematic as most airlines disclosed their accounting policy for the remaining five accounting issues.