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Author Topic: [ok] Accounting Issues  (Read 613 times)

Offline DanDan

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[ok] Accounting Issues
« on: September 18, 2019, 09:11:28 AM »
Hello Sami,

there seems to be following problem with accounting: GW2 (HaF) >>> https://www.airwaysim.com/game/Info/Airline/View/2410/290/#AirlineInfo
- The airline seems to have had a loss in Q2, like in the previous ones.
- But in Q2, the Non-Current & Current assets have increased, and not by a bit, but by almost 100%!

So in my opinion, the assets seem off - but would be nice if you can check. Thx.
« Last Edit: October 01, 2019, 02:56:31 PM by Sami »

Online Sami

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Re: Accounting Issues
« Reply #1 on: September 18, 2019, 09:14:31 AM »
Amount of assets is not related to the profit/loss.

He has probably bought or sold planes, or slots and/or taken a loan, or something similar which affect the assets but not profit.

Edit: But have to take a closer look since the airline's cash flow statement does not indicate any major changes. (Balance sheet is counted "backwards" from present day and there might be a leap year thing here too?)
« Last Edit: September 18, 2019, 09:23:10 AM by Sami »

Offline DanDan

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Re: Accounting Issues
« Reply #2 on: September 18, 2019, 10:11:56 AM »
ok, i will try to keep the tone civil... WHAT???

This happened:
1) at the end of Q1, the company had ~1B in current assets (~cash), and ~1.9B in non-current assets (slots, aircraft, pre-payments on aircraft).
2) after making a loss of 195M in Q2, the airline had:
3) at end of Q2, 1.5B in current and 3.7B in non-current assets.

- on the side of liabilities, the liabilities have remained at 0
- "shareholder equity" has risen to reflect the increase in assets.

Trying to explain the assets:
- The airline has not bought new aircraft in numbers that would suggest any such rise in current assets (just leasing planes from an alliance mate, even though the same AC type is available in storage - but thats a different story).
- There was a change in airports in Singapore, but even if slot prices would have increased by enormous dimensions in the new airport to reflect this, the value in the books should remain at "lowest value princinple" - and no, slot prices didnt skyrocket in Changi.
- Even less explainable is the increase in current assets, considering the negative cashflow of 200M - how would the amount of cash increase that way!

Trying to explain the change in :
In real life, there is one explanation that actually would explain this: the company emitted new shares, worth about 2.6B.
But AFAIK, this is not possible in AWS?

Offline groundbum2

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Re: Accounting Issues
« Reply #3 on: September 18, 2019, 11:24:41 AM »
maybe planes he owned got revalued? It's possible to buy planes for $5M but they hit the books at $8M as they're a bargain on the used market. You also mentioned some intra-alliance trading but I didn't look at that but the same principle would apply, book value vs price paid.

Simon

Offline DanDan

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Re: Accounting Issues
« Reply #4 on: September 18, 2019, 11:28:38 AM »
maybe planes he owned got revalued? It's possible to buy planes for $5M but they hit the books at $8M as they're a bargain on the used market. You also mentioned some intra-alliance trading but I didn't look at that but the same principle would apply, book value vs price paid.

Simon

no, the accounting value does not change, even if the aircraft is worth double the money; it stays in the books at lowest price. also: it is 2.6 Billions that are unaccounted for - that airlines whole fleet isnt worth that much money!
« Last Edit: September 18, 2019, 11:30:57 AM by dandan »

Offline schro

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Re: Accounting Issues
« Reply #5 on: September 18, 2019, 12:27:08 PM »
Debits and credits are not buffing out on this one...

Online Sami

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Re: Accounting Issues
« Reply #6 on: September 25, 2019, 04:29:44 PM »
On wk 27/81 the balance sheet's cash value was stored also for non-HQ airport's income statement row, for unknown reason, causing the cash balance to show at 2x the total size (since he has HQ + one base) for this single week only.

Can't see why it happened (but no harm from that either) and don't see that with others either... Report again if seen again.



Taking that back, he did not have two bases, but instead airport relocated to another one ... => Cause found, fix pending.
« Last Edit: September 25, 2019, 04:35:08 PM by Sami »

 

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