# ASC 340-980-35: Other Assets and Deferred Costs — Regulated Operations — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/340/980/#35-subsequent-measurement) 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): 2026-09-09T23:59:54.927Z to 2026-09-09T23:59:54.927Z Record version: sha256:6aa0a8af44014f89295ad4801edd4fea3fab6771d613c17348d276cc111210e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-980-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/340/980/#35-subsequent-measurement) SEC content: no #### Effect of Rate Action on Asset Value ##### [340-980-35-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:54.927Z to 2026-09-09T23:59:54.927Z Record version: sha256:e83d5460fbabb39a178fdad9264ed2e79d41519a0318a7cd427982eb74178593 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Rate actions of a regulator can reduce or eliminate the value of an asset. If a regulator excludes all or part of a cost from [allowable costs](https://asc.understandingaccounting.org/glossary/a/#allowable-costs "All costs for which revenue is intended to provide recovery. Those costs can be actual or estimated. In that context, allowable costs include interest cost and amounts provided for earnings on shareholders' investments."), the carrying amount of any asset recognized pursuant to paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) shall be reduced to the extent of the excluded cost. Whether other assets have been impaired shall be judged the same as for entities in general and the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 shall apply. ##### [340-980-35-2](https://asc.understandingaccounting.org/asc/340/980/#340-980-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:54.927Z to 2026-09-09T23:59:54.927Z Record version: sha256:2f00875ddafcb35c6cc63e92a4220d554a43c65b4b68f5021f6da9e9f30c6b50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a regulator allows recovery through rates of costs previously excluded from allowable costs, that action shall result in recognition of a new asset. The classification of that asset shall be consistent with the classification that would have resulted had those costs been initially included in allowable costs. #### Phase-In Plans ##### [340-980-35-3](https://asc.understandingaccounting.org/asc/340/980/#340-980-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:54.927Z to 2026-09-09T23:59:54.927Z Record version: sha256:8d76e94cb43529e4682436ce36a868699c9a83541b638a37792586cf87dfc6bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an existing [phase-in plan](https://asc.understandingaccounting.org/glossary/p/#phase-in-plan "Any method of recognition of allowable costs in rates that meets all of the following criteria: The method was adopted by the regulator in connection with a major, newly completed plant of the regulated entity or of one of its suppliers or a major plant scheduled for completion in the near future. The method defers the rates intended to recover allowable costs beyond the period in which those allowable costs would be charged to expense under generally accepted accounting principles (GAAP) applicable to entities in general. The method defers the rates intended to recover allowable costs beyond the period in which those rates would have been ordered under the rate-making methods routinely used prior to 1982 by that regulator for similar allowable costs of that regulated entity.") is modified or a new plan is ordered to replace or supplement an existing plan, the criteria in paragraph [980-340-25-3](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-3) shall be applied to the combination of the original plan and the new plan. The date when deferrals begin, used in applying the criterion in paragraph [980-340-25-3(c)](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-3), would be the date of the earliest deferral under either the new or the old plan, and the final recovery date would be the date of the last recovery of all amounts deferred under the plans. ##### [340-980-35-4](https://asc.understandingaccounting.org/asc/340/980/#340-980-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:54.927Z to 2026-09-09T23:59:54.927Z Record version: sha256:3a1726ed910791a9cedce1ca0c06260c1fa37981f96f4f279f5793520bd797d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A phase-in plan is a method of rate-making intended to moderate a sudden increase in rates while providing the regulated entity with recovery of its investment and a return on that investment during the recovery period. A disallowance is a rate-making action that prevents the regulated entity from recovering either some amount of its investment or some amount of return on its investment. Section 980-360-35 specifies the accounting for disallowances of plant costs. If a method of rate-making that meets the criteria of this Subtopic for a phase-in plan includes an indirect disallowance of plant costs, that disallowance shall be accounted for in accordance with that Section. Example 6 (see paragraph [980-340-55-33](https://asc.understandingaccounting.org/asc/340/980/#340-980-55-33)) illustrates a phase-in plan with an indirect disallowance.