Airline MRO Billing Accounting
18 November 2009
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I work in a company specialized in doing MRO for aircrafts, the issues that the work orders of the maintenance and repair takes from a month to 4 months direct salaries and materials are issued to the tasks and salaries are expensed in monthly basis and appears in the P&L while revenue will recorded once the job is completed and invoice is issued
Percentage of completion is not adopted, and the idea is to charge the cost to job order as work in progress (balance sheet) and recognize the revenue and the expenses once the job completed in order to apply matching principle
What do you think any suggestions?
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Treatment not in accordance with IAS 18. Follow POC. Recognize revenue based on the amount of work done. Will recommend cost as a % of total cost as the basis for determining poc.
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