Software
What software does the IAA use?
Oracle Fixed Assets
A simple oil change or patch repair is routine maintenance, so it is recorded as this type of expenditure?
A revenue expenditure or expense
Does IND depreciate Airplanes?
No, the airlines own the planes
What stage of the fixed asset cycle is the acquisition stage?
The 1st
What is the first step IND must take before disposing of one of its aircrafts?
Identify the asset as surplus or no longer needed
True or False: The Software can track land, but not depreciate it.
True
A major repair that extends an item's life, like a new engine, is recorded as this?
A capital expenditure or asset
IND treats capital assets as assets that cost more than..
$2500
Who approves the acquisition of fixed assets?
IAA (Indianapolis Airport Authority)
Which federal agency must be notified to update aircraft registration?
FAA (federal aviation administration)
What is the list of Assets Called?
Tax Asset Detail
A common policy to decide if something is an asset is that the cost must be higher than this dollar amount?
$5,000
What method of depreciation does IND use?
Straight - line depreciation
What system do vendors submit bids through?
PlanetBids
IND must determine this key financial value before selling a retired aircraft?
The aircraft’s fair market value
What is an example of something the airport might depreciate?
Buildings, Roads, Cars, Machinery, Etc.
A unique control at the Indianapolis Airport requires approval from these external stakeholders for major capital projects, as the costs impact their landing fees?
Airlines
When tenants upgrade their facilities in the airport, who depreciates them?
The airport (IND)
What are Capital improvement projects?
Runway expansions, new hotel construction, airplane hangars, etc.
This legal document is required when IND transfers ownership of an airplane to another airline, airport, or buyer
Bill of sale or transfer of title
What is the primary function of this software?
To accurately calculate depreciation for book and tax purposes, ensure compliance with standards (like GAAP and IRS rules), and generate financial reports.
If a company incorrectly capitalizes a routine repair instead of expensing it, they are committing misclassification which results in this artificial distortion of their financials?
Inflating Assets/Income
How are major improvements depreciated at IND?
Capitalized and depreciated like new assets
What structure means the airlines assume the financial risks to cover all operating and capital borrowing costs.
Residual Rate-making Methodology
How does IND ensure that the aircraft is no longer associated with the airport?
Remove all logos, decals, and identification labels before transfer or resale