See how accounting works in practice, from airline miles and museum collections to Coca-Cola’s brand value.
In Short: Many museums do not put a money value on their collections at all. Items held for public display, study and preservation are often treated as special heritage assets, and accounting rules in several countries allow museums to leave them off the balance sheet, as long as they explain the collection in the notes … Read more
When you earn frequent flyer miles, the airline has made you a promise: a free flight or upgrade in the future. In its accounts, the airline treats that promise as a debt. Part of what you paid for your ticket is held back as deferred revenue, a type of liability. The airline only counts that … Read more
Coca-Cola is one of the most recognized brand names on Earth. Brand consultancies that publish yearly rankings regularly estimate its value in the tens of billions of dollars. Yet if you read the company’s balance sheet, you will not find a line that says “Coca-Cola brand” with that kind of figure next to it. This … Read more