# ASC 330-908-25: Inventory — Airlines — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/330/908/#25-recognition)

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## ASC 330-908-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/330/908/#25-recognition)

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##### [330-908-25-1](https://asc.understandingaccounting.org/asc/330/908/#330-908-25-1)

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[Expendable parts](https://asc.understandingaccounting.org/glossary/e/#expendable-parts "Parts that are ordinarily used up (consumed) and replaced with new parts, as opposed to those parts that are capable of being used over and over after being refurbished (rotable flight equipment).") shall be recorded at cost in a current asset account for [spare parts](https://asc.understandingaccounting.org/glossary/s/#spare-parts "Parts, appurtenances, and accessories of aircraft (other than aircraft engines and propellers), of aircraft engines (other than propellers), of propellers, or of appliances that are maintained for installation or use in an aircraft, aircraft engine, propeller, or appliance but that are not yet installed or attached.") 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](https://asc.understandingaccounting.org/asc/330/908/#330-908-25-2)

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