Airline Accounting Issue Tied to Groundings Divides US Board

Accounting standard-setters were split Wednesday on whether they should update rules airlines use to report payments they receive from manufacturers when planes are grounded due to equipment failure.

The Financial Accounting Standards Board, in a 4-3 vote, decided against adding a project following agenda input from respondents including United Airlines Holdings Inc. that current practice leads to unintuitive outcomes in corporate financial reports.

Board member Frederick Cannon pushed for the board to take up the accounting issue, saying he read the staff’s memo on the topic while he was grounded due to equipment failure at the Charleston Airport. ...