A co-owned airplane should list the net aircraft value on the balance sheet . The initial value is usually the acquisition price or market value; which is determined when a buyer and seller come to agreement on a transaction. That price is usually adjusted on the balance sheet for depreciation. Continue reading “How do you list aircraft value on the balance sheet?” →

Most shared airplane ownerships will want to set aside money for funded reserves. The purpose is to offset future outlays associated with engine replacement, prop overhaul, and items such as, Cirrus Airframe Parachute System.

You’ll find it easier, from a book keeping perspective, if you keep funded reserves in a savings account instead of co-mingling the funds with money in a checking account.

We use our LLC checking account to hold money to pay for gas and oil changes, and for regular maintenance, such as, tires, brakes, spark plugs, etc. But we transfer reserve funds for engine and prop overhaul into a savings account. Continue reading “How do you present funded reserves on the balance sheet of a shared airplane ownership?” →

I’ll admit, sometimes the asset listing on a balance sheet can look confusing. Over the next several weeks, I’ll explain the detail behind four typical asset categories shown on a shared airplane ownership balance sheet:

1. Cash & Receivables
2. Funded Reserves
3. Prepaid Items
4. Fixed Assets or The Airplane

Continue reading “How do you present Assets on the balance sheet of a shared airplane ownership?” →