# ASC 330-908: Inventory — Airlines Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/330/908/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:51:55.917Z to 2026-09-09T23:52:13.368Z Record version: sha256:b135b7f4e8573c1ab40f253c9035b3b5cc38ca796be14df672e68c5c8a141cd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-908: Inventory — Airlines ### Machine-generated study aids ```json { "summary": "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": [ "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." ], "categories": [ "Inventory and PP&E", "Industry-specific", "Subsequent measurement", "Initial measurement" ], "audience_level": "intermediate", "student_note": "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.", "related_topics": [ "330-10", "908-10", "908-330", "908-360", "360-10" ], "key_concepts": [ "expendable spare parts", "materials and supplies", "allowance for obsolescence", "rotable parts", "cost valuation", "current asset classification", "internal consumption inventory", "airline industry" ] } ``` Source downloaded (UTC): 2026-09-09T23:51:55.917Z to 2026-09-09T23:51:55.917Z Record version: sha256:3a551ed9e808afc26c71de19362a0c94406f121bd389835c0532e51e778665cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-908-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/330/908/#05-overview-and-background) SEC content: no ##### [330-908-05-1](https://asc.understandingaccounting.org/asc/330/908/#330-908-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:55.917Z to 2026-09-09T23:51:55.917Z Record version: sha256:a242b038e52fbe6029f69e884f512a6c037aa594630ee903c7c13fc4556b4cf9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for inventory accounting for entities in the airline industry. ##### [330-908-05-2](https://asc.understandingaccounting.org/asc/330/908/#330-908-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:55.917Z to 2026-09-09T23:51:55.917Z Record version: sha256:159f033d374d9cd01389f6bb7b3aceb545b2c7157a5324c82d5146cb2dd4eaa2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-09T23:51:57.728Z to 2026-09-09T23:51:57.728Z Record version: sha256:73fbead827d045686158bc3ff2b8fcab4ac21b0bb5ef57b111ceb9cb6cf6bebe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-908-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/330/908/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [330-908-15-1](https://asc.understandingaccounting.org/asc/330/908/#330-908-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:57.728Z to 2026-09-09T23:51:57.728Z Record version: sha256:cdf73216dcdf2ad6adf0d08fe0d4e57ccc01249aba32775b515a8a50b1f1db75 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 908-10-15. Source downloaded (UTC): 2026-09-09T23:52:01.526Z to 2026-09-09T23:52:01.526Z Record version: sha256:3a424b4ea18aef9e1dbf5f27f8e02001249430df997657fcb4c4f422859a4146 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-908-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/330/908/#25-recognition) SEC content: no ##### [330-908-25-1](https://asc.understandingaccounting.org/asc/330/908/#330-908-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:52:01.526Z to 2026-09-09T23:52:01.526Z Record version: sha256:ac08476eed0df129eaa67184891e0c5115def0b00f45176311deec2e2a8d1a79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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) Pending content: no Source downloaded (UTC): 2026-09-09T23:52:01.526Z to 2026-09-09T23:52:01.526Z Record version: sha256:baf198b497fa8d19f1b6ed8bf03caad72db040727a0220f729ec08975051d93b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 908-330-30 for a summary of the recognition and initial measurement standards for airline inventories. Source downloaded (UTC): 2026-09-09T23:52:05.170Z to 2026-09-09T23:52:05.170Z Record version: sha256:435d2c4a9067b783ba3bf776d8aca67a475aa66d8aa3b2a7fc3e103bef043189 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-908-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/330/908/#30-initial-measurement) SEC content: no ##### [330-908-30-1](https://asc.understandingaccounting.org/asc/330/908/#330-908-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:52:05.170Z to 2026-09-09T23:52:05.170Z Record version: sha256:3401f7ccb292c3f83e5d7a6c2ac461cb2278e628f380609247808f2041779732 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Inventories are valued at cost. Source downloaded (UTC): 2026-09-09T23:52:08.237Z to 2026-09-09T23:52:08.237Z Record version: sha256:6b9a46d5e086a9ddeb05287d98fba3e395feeac50acdccd2412aadeafbde3eb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-908-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/330/908/#35-subsequent-measurement) SEC content: no ##### [330-908-35-1](https://asc.understandingaccounting.org/asc/330/908/#330-908-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:52:08.237Z to 2026-09-09T23:52:08.237Z Record version: sha256:c24eea6a492a4764d94685b49dba4d061cf626fc94837fe963240ab0f19af293 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Inventories shall include an allowance for obsolescence that corresponds to the lives of the related fleets. Source downloaded (UTC): 2026-09-09T23:52:11.681Z to 2026-09-09T23:52:11.681Z Record version: sha256:9ba0a454d7aa1f628b7231686f51193c5425f00238c5893026f621bd04be8132 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-908-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/330/908/#40-derecognition) SEC content: no ##### [330-908-40-1](https://asc.understandingaccounting.org/asc/330/908/#330-908-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:52:11.681Z to 2026-09-09T23:52:11.681Z Record version: sha256:8853da9b10d21f66f031026ad1a0c721c097d072cee565158d7f9fee8347dd3a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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).") recorded 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 shall be charged to expense as they are used. Source downloaded (UTC): 2026-09-09T23:52:13.368Z to 2026-09-09T23:52:13.368Z Record version: sha256:dfe965d9fa18a4862feb7bda62566ae0d61a258bdefa94b02e0016fbc5d4166e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-908-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/330/908/#45-other-presentation-matters) SEC content: no ##### [330-908-45-1](https://asc.understandingaccounting.org/asc/330/908/#330-908-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:52:13.368Z to 2026-09-09T23:52:13.368Z Record version: sha256:81994e9718e8a5142fd1631f365b90e555a5a426b68329c54363dc427a3adffc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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).") are classified as current assets (see paragraph [908-360-45-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-45-1) concerning [rotable parts](https://asc.understandingaccounting.org/glossary/r/#rotable-parts "Rotable parts are normally repaired and reused, as opposed to those parts that are consumed in the operations (expendable parts).") and assemblies of significant value).