Airlines Reporting Corporation (ARC) Specialist Training Practice Test

An IAR adjustment is defined as what?

An adjustment in IAR to accommodate a residual value for an exchange transaction that is not being returned to the ARC accredited agent's client and it is not being issued on a MCO. A routine tax adjustment. An adjustment to airfare class. A discount applied to MCO.

Correct Answer:

An adjustment in IAR to accommodate a residual value for an exchange transaction that is not being returned to the ARC accredited agent's client and it is not being issued on a MCO.

Explanation:

The concept here is how an IAR adjustment is used to handle leftover value from an exchange. When a ticket is exchanged, there can be a residual amount that isn’t returned to the passenger and isn’t issued as a separate Miscellaneous Charge Order (MCO). The IAR adjustment is the mechanism that records and reconciles that remaining value within the ARC settlement so the agency’s accounts reflect the correct balance. This is specifically about capturing that residual value in IAR rather than issuing it on an MCO or treating it as a routine tax adjustment, a class change, or a generic discount.

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