Ancillary Revenue — Seat Selection Fee
Recording revenue from fees paid by passengers to select preferred seats (exit row, extra legroom).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Seat Revenue (ATL Component) | Liability (-) | 25.00 | - |
| Ancillary Revenue — Seat Selection | Revenue (+) | - | 25.00 |
💡 Accountant's Note
Seat selection fees are collected at booking and form part of the ATL — they are deferred until the flight operates. Once the passenger boards the flight, the seat selection obligation is fulfilled and the fee is recognized as revenue. Premium seat fees (extra legroom, bulkhead) are increasingly significant ancillary revenue streams.
Practitioner & Systems Framework
💻 ERP Architecture
Seat selection fees are captured in the PSS at the time the seat assignment is made (booking or check-in). The fee is included in the ATL alongside the base fare. The revenue accounting system releases both the base fare and associated seat fee on flight departure. Seat fees that are part of a bundled product (e.g., a 'Plus' fare bundle that includes seat selection, priority boarding, and a bag) require IFRS 15 allocation across the bundle's performance obligations — seat selection is allocated its standalone selling price.
⚠️ Audit Flags
Auditors confirm that seat fees bundled into fare products are appropriately allocated across performance obligations under IFRS 15. Test that the seat fee ATL release is synchronized with the base fare release on flight departure. Review the standalone selling price (SSP) used for seat allocation within bundles — SSPs should reflect actual seat fee rates charged on an unbundled basis.
📄 Required Documentation
PSS seat fee report by flight, ATL seat fee component, IFRS 15 bundle allocation methodology and SSPs, revenue recognition at flight departure, bundled product fare structure, and ancillary revenue disaggregation by category.
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