Posted by & filed under Accounting Principles.

Description: In December the federal government brought in new regulations requiring the airlines to pay up to $1,000 in compensation to travelers hit by they canceled flights, other than for safety reasons of course. But customers are complaining that they haven’t been getting the refunds when they request them, and, further, they also haven’t been receiving explanations when they are turned down for a refund request. The Canadian Transportation Agency is responding to these complaints by saying it will look into the matter.

Date:  February 14, 2020




Discussion points:

1) Have you encountered this flight cancellation problem and been denied a refund?

2) The regulations came into place on December 15. Were you aware that they had been enacted?

3) Wiley’s Financial Accounting : Tools for Business Decision-Making tells us about liabilities for uncertain events in Chapter 10. Do you think that refunds for cancellations might be an area where an airline would need to record a liability?

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