ASC 330-908

Airlines

330 Inventory

Download JSON Download Markdown9 paragraphs · 7 sectionsJump to summary

Source downloaded: 2026-09-09T23:52:13.368Z.Record version b135b7f4e857. Effective date must be checked in the source.

In brief

IntermediateInventory and PP&E Industry-specific Subsequent measurement Initial measurement

ASC 330-908 governs inventory accounting for airlines, where "inventory" consists of expendable spare parts, materials, and supplies held for internal consumption rather than sale. Expendable parts are recorded at cost in a current asset account akin to a prepaid expense, carry an allowance for obsolescence tied to the lives of the related fleets, and are charged to expense as used.

Key points (6)

Airline inventories differ from the classic definition in Topic 330 because they are for internal consumption, not for sale, and consist primarily of expendable (spare) parts, materials, and supplies (330-908-05-2).
Expendable parts are recorded at cost in a current asset account for spare parts and supplies, similar in nature to a prepaid expense (330-908-25-1).
Reusable spare parts and supplies recovered from construction, maintenance, or retirement of property and equipment are included with expendable parts at the average cost of comparable items, based on condition and continuing utility (330-908-25-1).
Materials and supplies held in small quantities and purchased as needed are charged to expense when purchased (330-908-25-1).
Inventories are valued at cost (330-908-30-1) and must include an allowance for obsolescence corresponding to the lives of the related fleets (330-908-35-1).
Expendable parts are charged to expense as they are used (330-908-40-1) and are classified as current assets (330-908-45-1); rotable parts and assemblies of significant value are addressed in 908-360-45-1.

For students. The key trap is treating airline "inventory" like goods held for sale — it is really consumable spare parts accounted for like a prepaid expense at cost, with obsolescence allowances keyed to fleet lives. Also distinguish expendable parts (current assets under 330-908) from rotable parts and assemblies of significant value, which are addressed as property and equipment under 908-360.

expendable spare parts materials and supplies allowance for obsolescence rotable parts cost valuation current asset classification internal consumption inventory airline industry

Machine-generated study aid for ASC 330-908. Check the source paragraphs below.

330-908-05Overview and Background

Source downloaded: 2026-09-09T23:51:55.917Z.Record version 3a551ed9e808. Effective date must be checked in the source.

330-908-05-1

This Subtopic provides guidance for inventory accounting for entities in the airline industry.

330-908-05-2

The inventories in an airline operation (that is, carrier services for passengers and/or cargo) are for internal consumption and not for sale; they therefore differ substantially from the classical definition (see Topic 330). Inventories in an airline operation comprise primarily expendable (spare) parts and materials and supplies used in the airline's operation.

330-908-15Scope and Scope Exceptions

Source downloaded: 2026-09-09T23:51:57.728Z.Record version 73fbead827d0. Effective date must be checked in the source.

Overall Guidance

330-908-15-1

This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 908-10-15.

330-908-25Recognition

Source downloaded: 2026-09-09T23:52:01.526Z.Record version 3a424b4ea18a. Effective date must be checked in the source.

330-908-25-1

Expendable parts shall be recorded at cost in a current asset account for spare parts and supplies, which is similar in nature to a prepaid expense. Reusable spare parts and supplies recovered in connection with construction, maintenance, or retirement of property and equipment shall be included with expendable parts at the average cost of comparable items. This valuation is typically based on the condition of the part or group of parts and their continuing utility. Materials and supplies held in small quantities and purchased as needed shall be charged to expense when they are purchased.

330-908-25-2

See Section 908-330-30 for a summary of the recognition and initial measurement standards for airline inventories.

330-908-30Initial Measurement

Source downloaded: 2026-09-09T23:52:05.170Z.Record version 435d2c4a9067. Effective date must be checked in the source.

330-908-30-1

Inventories are valued at cost.

330-908-35Subsequent Measurement

Source downloaded: 2026-09-09T23:52:08.237Z.Record version 6b9a46d5e086. Effective date must be checked in the source.

330-908-35-1

Inventories shall include an allowance for obsolescence that corresponds to the lives of the related fleets.

330-908-40Derecognition

Source downloaded: 2026-09-09T23:52:11.681Z.Record version 9ba0a454d7aa. Effective date must be checked in the source.

330-908-40-1

Expendable parts recorded in a current asset account for spare parts and supplies shall be charged to expense as they are used.

330-908-45Other Presentation Matters

Source downloaded: 2026-09-09T23:52:13.368Z.Record version dfe965d9fa18. Effective date must be checked in the source.

330-908-45-1

Expendable parts are classified as current assets (see paragraph 908-360-45-1 concerning rotable parts and assemblies of significant value).