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Author Topic: Accounting  (Read 1593 times)

Offline JonnyAngel

  • Members
  • Posts: 179
Accounting
« on: August 04, 2010, 07:13:52 PM »
Forgive me if this has already been discussed (I know we all hate multiple posts on the same topic) but Sami, or anyone; are there any planned changes to the accounting system?

I get why it shows a loss if I spend money to lease an aircraft, because I'm just paying a bill in advance  - a bleed which is a loss. But for aircraft purchases, and I would argue even base setup, wouldn't that be considered a capital investment? So say you say buy check-in kiosks, invest in call centres, ground handling equipment, etc, etc. - all the things needed at a base - and those are part of the charge you take when opening a new base - all of those would be capital investments because your airline would own them? Especially seeing as the things you don't own i.e the physical airport space you're still paying rent on. So shouldn't those actually add to your book value even if your cash is depleted? Same for aircraft purchases. So that the earnings number you see is something a bit closer to EBITDA. It would help a player know more clearly how well he was doing.

Plus, for our own bragging purposes, it would probably help some of us on the stats page  (I think my margins are somewhat better than reflected but I haven't pulled out a calc  ;D)
« Last Edit: August 04, 2010, 07:16:52 PM by JonnyAngel »

filipebravo

  • Former member
Re: Accounting
« Reply #1 on: August 05, 2010, 02:50:47 AM »
I agree. In AWS margins are highly affected by cash bleeds that should be considered investments. Basically what we have is a cash flow statement. It would be interesting to have EBITDA and EBITDA margin. Should we move this thread to feature requests ??

Offline swiftus27

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  • Posts: 4395
Re: Accounting
« Reply #2 on: August 05, 2010, 03:59:22 PM »
Um, I dont think EBITDA will really apply because we dont really calculate appreciation/depreciation or dividends.  

Most of the other posts were mainly about following GAAP principles. 

ngaira

  • Former member
Re: Accounting
« Reply #3 on: September 03, 2010, 04:07:46 PM »
Hi I dont know if this is off topic but I have to ask. I have noticed a very very eratic pattern in my finances and yet I have not done anything major with the company. Huge amounts have been deducted from cash reserves and I cant seem to trace it on the cashflow statement. Any ideas anyone?

Offline schro

  • Members
  • Posts: 3083
Re: Accounting
« Reply #4 on: September 04, 2010, 07:57:02 PM »
Hi I dont know if this is off topic but I have to ask. I have noticed a very very eratic pattern in my finances and yet I have not done anything major with the company. Huge amounts have been deducted from cash reserves and I cant seem to trace it on the cashflow statement. Any ideas anyone?

When you say erratic, do you mean day by day or week by week?

The game's finances are designed to work on a week-long basis rather than the more granular daily basis.

Things that can cause large cash swings downwards are as follows:

Staff Salaries paid Tues mid-day
Staff training paid Weds mid-day
Income Taxes deducted around the 10th of each month based on prior month's profits.

Staff salaries often end up being about 20% of your expenses for a week, thus, your expected low point.....

ngaira

  • Former member
Re: Accounting
« Reply #5 on: September 05, 2010, 06:28:24 PM »
When you say erratic, do you mean day by day or week by week?

The game's finances are designed to work on a week-long basis rather than the more granular daily basis.

Things that can cause large cash swings downwards are as follows:

Staff Salaries paid Tues mid-day
Staff training paid Weds mid-day
Income Taxes deducted around the 10th of each month based on prior month's profits.

Staff salaries often end up being about 20% of your expenses for a week, thus, your expected low point.....

Thanks. The funny thing, this huge payout occured once and I have been waiting to see if it happens again but it hasnt. I have had a look at all the components that you mention. I actually reduced my staff compliment (as in fired guys) with a view to reduce the wage bill. But when I look at the financials , the staff wages figures is still the same. So..... I dont know whats going on.

 

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