Air Canada 2013 Annual Report Download - page 92

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2013 Air Canada Annual Report
92
The Corporation has accounted for this change in accounting policy using the relevant transitional provisions and
derecognized the carrying amount of the assets, liabilities and non-controlling interests of the three Fuel Facility Corporations
as at January 1, 2012. The adjustments for each financial statement line item affected are presented in the tables below.
Adjustments to consolidated statement of financial position
December 31, 2012 January 1, 2012
Cash and cash equivalents $ (4) $ (71)
Short-term investments (49) –
Property and equipment (160) (150)
Current portion of long-term debt (7) (5)
Long-term debt (190) (199)
Other long-term liabilities (8) (6)
Decrease in net assets $8 $ 11
Deficit (3) (6)
Non-controlling interests (5) (5)
Equity $(8) $ (11)
Adjustments to consolidated statement of operations and statement of comprehensive income
Year ended
December 31, 2012
Other revenues $ (6)
Depreciation, amortization and impairment (9)
Increase in net income and comprehensive income $ 3
Increase in net income and comprehensive income attributable to:
Shareholders of Air Canada 3
Non-controlling interests -
Equity $ 3
These adjustments had an impact of $0.01 on basic and diluted earnings per share for the year ended December 31, 2012.
C) PASSENGER AND CARGO REVENUES
Passenger and cargo revenues are recognized when the transportation is provided, except for revenue on unlimited flight
passes which is recognized on a straight-line basis over the period during which the travel pass is valid. The Corporation has
formed alliances with other airlines encompassing loyalty program participation, interline agreements and code sharing and
coordination of services including reservations, baggage handling and flight schedules. Revenues are allocated based upon
formulas specified in the agreements and are recognized as transportation is provided. Passenger revenue also includes certain
fees and surcharges and revenues from passenger-related services such as ticket changes, seat selection, and excess baggage
which are recognized as the services are provided.
Airline passenger and cargo advance sales are deferred and included in Current liabilities. Advance sales also include the
proceeds from the sale of flight tickets to Aimia Canada Inc. (“Aeroplan”), a corporation that provides loyalty program services
to Air Canada and purchases seats from Air Canada pursuant to the Commercial Participation and Services Agreement
between Aeroplan and Air Canada (the "CPSA").