Wet leasing is aircraft operated under Lessor's AOC. Damp lease includes cockpit crew but not cabin attendants. FTL schemes must comply with UK operator's approved scheme. Operators must inform passengers of operating air carrier identity
Residual value represents the net value of an asset at the end of its useful life. Calculated by subtracting disposal costs from salvage value. Salvage value is the book value remaining on the balance sheet. Disposal costs include expenses related to removing or selling the asset
Lease is a contractual arrangement for user to pay owner for asset use. Lessor owns asset, lessee obtains right to use in return for payments. Lease can be tangible property or intangible equipment
IFRS 16 replaced IAS 17 in 2016, setting principles for lease accounting. Standard applies to all leases except specific exceptions. Covid-19-related rent concessions amended in 2020
IFRS 16 replaced IAS 17 in January 2016. Standard applies to all leases except specific exceptions. Covers recognition, measurement, presentation and disclosure of leases
Residual value is the estimated worth of an asset at lease or useful life end. Calculated as salvage value minus disposal cost. Can be negative if disposal costs exceed salvage value. Management must periodically reevaluate estimated values