Question: AF has a frequent flyer program, Flying Blue, which allows members to acquire miles as they fly on Air France or partner airlines that are

AF has a frequent flyer program, “Flying Blue,” which allows members to acquire “miles” as they fly on Air France or partner airlines that are redeemable for free flights or other benefits.

a. How does AF account for these miles?

b. Does AF report any liability associated with these miles as of December 31, 2013?

c. Is AF’s accounting approach under IFRS consistent with how U.S. GAAP accounts for contracts with multiple performance obligations? Explain.

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