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Compare each of the company’s individual policies to those of its competitors, noting any specific differences that exist, and how each of those differences will impact the comparability of the company’s reported results.

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Locate the company’s (our company is SOUTHWEST AIRLINES) most recent annual report

Paste the company’s “key accounting policies” (generally found in footnote #1) into a document. 

Assess each policy for ‘reasonableness.’ 

Compare each of the company’s individual policies to those of its competitors, noting any specific differences that exist, and how each of those differences will impact the comparability of the company’s reported results.

Southwest airlines 10-Khttps://www.sec.gov/ix?doc=/Archives/edgar/data/0000092380/000009238021000033/luv-20201231.htm

-The document attached is Southwest Airlines accounting policies. Use the above assignment instructions to assess the FOUR following acconting policies for Southwest Airlines that are present in the document. Again, assess each policy for reasonableness and compare policies to its competitiors, noting any differences and how each difference will impact the comparibility of the company’s reported results.

FOUR POLICIES TO BE ANAYZED:

1. Aircraft and Engine Maintenance

2. Goodwill and Intangible Assets

3. Revenue Recognition

4. Loyalty Program

Competitor 10-Ks – The following are the 3 competitors to be compared with to Southwest Airlines:

ALK – ALASKAN AIRLINES (Starting pg 59) https://www.sec.gov/ix?doc=/Archives/edgar/data/766421/000076642121000018/alk-20201231.htm

JBLU – JET BLUE (Starting pg 70) https://www.sec.gov/ix?doc=/Archives/edgar/data/0001158463/000162828021003705/jblu-20201231.htm#i73e87a45b8f84555a862206f4ad7a21d_13

HA – HAWAIIAN HOLDINGS INC (Starting pg 67) https://www.sec.gov/ix?doc=/Archives/edgar/data/1172222/000117222221000027/ha-20201231.htm#id8b2f3919b174b75890a05c210fd419d_16

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