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Sep
20
2016
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Posted 7 years 220 days ago ago by Admin
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“One of my great ambitions before I die is to fly in an aircraft that is on an airline's balance sheet.”
– Sir David Tweedie at the Empire Club of Canada, 25 April 2008
With that statement, Sir David Tweedie changed the world. For nearly a decade, the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) labored to create a new set of accounting standards governing leases. In the first quarter of this year, FASB finally released Topic 842 on leases, and IASB released IFRS 16 on leases. Let’s not rewrite the hundreds of pages that have already been written about the new standards, but do note that you can find some of the best at www.elfaonline.org/Issues/Accounting/. (Look especially for articles by Bill Bosco, who has very clear explanations.) The major takeaway is that now leases have to appear on corporate balance sheets.
So why is this important to helicopters? While it's a truism that the oil industry drives the helicopter industry, it’s seldom mentioned—but just as true—that the availability of capital equally drives the helicopter industry.
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