My understanding of Aviation accounting is a work in progress.
Would seniors with better understanding shed some light on the following query.
The (non cash) forex losses in IndiGo’s $ lease liabilities are expensed from the P&L on a quarterly basis , is this a good accounting practice?
As the Average tenure of these lease is 6 years, should’nt the forex adjustment be spread over the lease cycle? The fall in currency anyway gets passed on to the consumer as higher ticket prices. The Rs. has fallen by a third since 2014. Although IndiGo flourished during this time frame , if someone had only read its P&L(as per latest standards) they would be utterly confused.
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