GOALS AND OBJECTIVES OF AIRPORT ACCOUNTING
The functions of accounting are defined and the various airport services and their relationship to accounting are reviewed. Airport lease policy, cost accounting distinctions between airport areas, and airport management goals are discussed. Two broad categories of accounting reporting are the internal report and the public report. Objectives of these two areas of reporting are described, and six specific reporting functions (budgetary process and preparation, public financial statements, assembling costs for establishing pricing, control and record capital expenditures, reports to bond holders, forecasting future revenues) are discussed. Comments are made on the measurement of airport management's efficiency, the allocation of indirect expenses (joint costs), depreciation practices and other problems. An airport accounting system should be designed to record, accumulate and periodically report financial data pertaining to the major business functions or services provided at the airport. Procedures for allocating indirect expenses to the primary airport cost centers should be specified so that the system can (1) report the results of operation of each of the various airport businesses, and (2) provide adequate data for establishing and periodically adjusting tenant and user rates and charges.
-
Supplemental Notes:
- From Airport Economic Planning by G.P. Howard.
-
Corporate Authors:
Massachusetts Institute of Technology Press
55 Haywood Street
Cambridge, MA United States 02142-1493 -
Authors:
- Joerger, R K
- Publication Date: 1974
Media Info
- Pagination: p. 332-343
-
Serial:
- Publication of: American Society of Civil Engineers
- Publisher: American Society of Civil Engineers
Subject/Index Terms
- TRT Terms: Accounting; Airport operations; Annual reports; Budgeting; Capital expenditures; Costs; Depreciation; Finance; Forecasting; Indirect costs; Pricing; Reports; User charges
- Uncontrolled Terms: Reporting methods
- Old TRIS Terms: Airport management; Financial reports
- Subject Areas: Aviation; Finance; Terminals and Facilities;
Filing Info
- Accession Number: 00155730
- Record Type: Publication
- Source Agency: Massachusetts Institute of Technology
- Files: TRIS
- Created Date: Aug 31 1977 12:00AM