Income Statement Redux (improvements)

[LemonButt]

The problems with current income statement:

1.  It's too long--takes up 2 full screens on my 1980x1080 monitor
2.  It's too much information for beginners (too granular)
3.  It's too much information for experts (really don't care what baggage fees cost because I can't change them, for example)
3.  Some items are out of place and/or would be more intuitive elsewhere.

Currently there are two "tiers" of data on the income statement--the line item (tier 1) and the breakdown by airport (tier 2).  To solve items 1 through 3 I propose we make the income statement more complex so it is less complex by adding a third tier of data.  The same data would be available as it is today, but instead of having tier 1 being baggage fees/pax fees/nav fees/etc, the tier 1 would simply be "Airport Fees" and then tier 2 would be baggage fees/etc. and then tier 3 would be breakdown by airport.  This would significantly reduce the length of the income statement and allow beginners to see the basics, but also allow experts to drill down.

Here is the proposed structure (each + sign represents a tier).  Only + (Tier 1 items) would be displayed by default and clicking the green arrow icon would expand the next tier for viewing. (skip to the orange section at the bottom to see a beautified version of the final result)

OPERATING REVENUES
+Sold Tickets (Economy) (++airport)
+Sold Tickets (Business) (++airport)
+Sold Tickets (First) (++airport)
+Total Operating Revenues (++airport)

OPERATING EXPENSES
+Staff Expenses
++Staff Salaries (+++airport)
++Staff Training (+++airport)

+Fuel Expenses
++Fuel Purchases (+++airport)
++Fuel Contract Fees (+++airport)

+Aircraft Expenses
++Aircraft Maintenance (+++airport)
++Aircraft Leases (+++airport)
++Aircraft Depreciation (+++airport)
++Aircraft Insurance (+++airport)
++Aircraft Parking (+++airport)

+Airport Fees
++Passenger Fees (+++airport)
++Navigation Fees (+++airport)
++Landing Fees (+++airport)
++Ground Handling (+++airport)

+Overhead Expenses
++Marketing
++Office Rent (+++airport)
++Fines
++Alliance Fees

+Total Operating Expenses  (++airport)

Operating Profit/Loss  (++airport)

OTHER REVENUES/EXPENSES
+Leased Out Aircraft
++Lease Income
++Aircraft Depreciation (new line item so leased out aircraft depreciation doesn't end up in operating expenses and skew operating results)

+Lease Fees  (+++airport)

+Purchased Aircraft
++Acquisition Expenses  (+++airport)
++Divestiture Profit/Loss (consolidates "profit on sold aircraft" and "loss on sold aircraft")

+Banking
++Bank Fees
++Interest

Total Other Revenues/Expenses

Profit/Loss before Taxes
Income Taxes
Net Profit/Loss


The current income statement has 40 rows (not including TAXATION OVERVIEW, which would remain unchanged).  The above income statement would have 24 rows and the unexpanded version would look like this:

OPERATING REVENUES

• Sold Tickets (Economy)
• Sold Tickets (Business)
• Sold Tickets (First)

Total Operating Revenues

OPERATING EXPENSES

• Staff Expenses = sum(Staff Salaries,Staff Training)
• Fuel Expenses = sum(Fuel Purchases,Fuel Contract Fees)
• Aircraft Expenses = sum(Aircraft Maintenance,Aircraft Leases,Aircraft Depreciation,Aircraft Insurance,Aircraft Parking)
• Airport Fees = sum(Passenger Fees,Navigation Fees,Landing Fees,Ground Handling)
• Overhead Expenses = sum(Marketing,Office Rent,Fines,Alliance Fees)

Total Operating Expenses 

Operating Profit/Loss

OTHER REVENUES/EXPENSES

• Leased Out Aircraft = sum(Lease Income,Aircraft Depreciation)
• Lease Fees
• Purchased Aircraft = sum(Acquisition Expenses,Divestiture Profit/Loss)
• Banking = sum(Bank Fees,Interest)

Total Other Revenues/Expenses

Profit/Loss before Taxes

• Income Taxes

Net Profit/Loss

[Sami]

Not planning any changes to it for now.

[dmoose42]

I agree that this would be a better presentation.