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HBR has a case study on the exact same topic - dated 2017 [Accounting Turbulence at Boeing] Unlike its rival Airbus, Boeing used a practice called program acco
by achow 7y ago
HBR has a case study on the exact same topic - dated 2017
[Accounting Turbulence at Boeing] Unlike its rival Airbus, Boeing used a practice called program accounting to record its commercial aircraft expenses since the 1980s.
https://hbsp.harvard.edu/product/118020-PDF-ENG https://hbsp.harvard.edu/product/118020-PDF-ENG
- Majromax 7y agoSeeing it listed like that, it's easy to spot where it appears in Boeing's current financial statements (https://investors.boeing.com/investors/financial-reports/default.aspx https://investors.boeing.com/investors/financial-reports/def...). From 2019Q3-10Q, the 787 'inventory' asset includes about $20b in deferred production expensing (plus $2.2b in tooling), and the 737MAX inventory contains $1.5b in deferred production and $0.5b in tooling. Combined, that represents a significant fraction of Boeing's $132b in total (gross) assets.