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).

1. BA has an account entitled “sales in advance of carriage.” Explain the purpose of that account. Would transactions of this type be handled similarly under U.S. GAAP? What is the amount of “sales in advance of carriage” as of March 31, 2009?
2. Note 30 lists “provisions for liabilities and charges.” Is the threshold for recognizing a liability associated with these items any different under IFRS than it is under U.S. GAAP? Explain. By how much has the total amount of the BA Group's “provisions for liabilities and charges” increased or decreased during fiscal 2009?
3. BA's note 37 lists contingent liabilities. Explain how the use of that term differs between IFRS and U.S. GAAP.

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