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Author Topic: Slot fees not showing on income statement, normal?  (Read 483 times)

Offline andriitis

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Slot fees not showing on income statement, normal?
« on: October 02, 2016, 08:23:39 AM »
Haven´t played the game for a few years, but now I noticed that slot fees are not shown on income statement. Is it normal that they do not show up there? After all it is quite a large expense, but for the last year I have something along the lines of 50 000 USD slot fees paid during whole of last year.

Offline Sami

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Offline andriitis

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Re: Slot fees not showing on income statement, normal?
« Reply #2 on: October 02, 2016, 08:46:33 AM »
Thanks a lot!

Offline ChuckPerry

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Re: Slot fees not showing on income statement, normal?
« Reply #3 on: February 05, 2017, 06:16:55 PM »
okay - I just got charged 5 mil for slots at my base airport for last week and I haven't bought any slots at any of my airports in over a month??   Looks like it's charging me AGAIN for this week.. anybody know what's up??  Anybody else get charged for slots they didn't buy??

Offline Cardinal

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Re: Slot fees not showing on income statement, normal?
« Reply #4 on: February 05, 2017, 06:56:03 PM »
Is this charge showing up on your Income statement or your Cash Flow statement? If you closed routes and did not keep the slots, they show up as a tax write-off on your Income statement:

Quote
Airport slot fees: Historically, when slots were acquired, the cost was immediately written off as an expense. However, given the long-lasting value that slots give an airline (the right to take-off from that airport at that time slot indefinitely), slots are now considered assets. As a result, buying slots will no longer reduce your taxable income until you close the route or the slot is taken away. Once you no longer control the slot, the original purchase price will be charged as an expense.

When you buy the slot, the cost is not taxable so does not show up on your income statement but does show up on your cash flow statement. When you forfeit the slot, the opposite happens: no cash is exchanged but the value of the slots reduces your taxable income.

Offline ChuckPerry

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Re: Slot fees not showing on income statement, normal?
« Reply #5 on: February 05, 2017, 07:12:54 PM »
Only on my income statement....so I understand now.. thanks for clearing that up... :)

 

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