FlyerTalk Forums - View Single Post - American Writes Off $592 Million Cash Trapped in Venezuela
Old Jan 15, 2016 | 5:36 pm
  #3  
FWAAA
FlyerTalk Evangelist
 
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
I was wondering when GAAP and other accounting principles would require that AA write off this (probably) worthless asset. No big surprise.

Originally Posted by mvoight
There must be a better way than dumping the whole $592 million.
AA probably isn't "dumping" anything. More likely, AA is writing off the $600 million but is probably retaining the several billion Venezuelan Bolivars just in case it can repatriate some of the money in the future. In that case, any future Dollars that AA is able to withdraw from Venezuela would constitute "income" (since the were written down to zero).
FWAAA is offline