Question: British Airways Plc BA a U K company prepares its financial 179713

British Airways, Plc. (BA), a U.K. company, prepares its financial statements according to International Financial Reporting Standards. BA's annual report for the year ended March 31, 2009, which includes financial statements and disclosure notes, is included with all new textbooks and can be found at When answering questions, focus on BA's “Group” financial information (which is equivalent to “Consolidated” under U.S. GAAP).

BA changed how it accounts for BA miles that are earned by members of their “Executive Club.” How does BA account for that revenue? Is this accounting approach consistent with how U.S. GAAP accounts for multiple-deliverable contracts? Explain. Based on your reading of their footnotes, how important an amount do you think this is for BA?

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