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  USA  02142-1493
  • Authors:
    • Joerger, R K
  • Publication Date: 1974

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00155730
  • Record Type: Publication
  • Source Agency: Massachusetts Institute of Technology
  • Files: TRIS
  • Created Date: Aug 31 1977 12:00AM