AF has a frequent flyer program, Flying Blue, which allows members to acquire miles as...
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Accounting
AF has a frequent flyer program, Flying Blue, which allows members to acquire miles as they fly on AF or partner airlines that are redeemable for free flights or other benefits. How does AF account for these miles?
a. Does AF report any liability associated with these miles as of December 31, 2015?
b. Although AFs 2015 annual report was issued prior to the effective date of ASU No. 2014-09, consider whether the manner in which AF accounts for its frequent flier program appears consistent with the revenue recognition guidelines included in the ASU.
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