{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/360/10/#25-recognition","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"360","topic_title":"Property, Plant, and Equipment","subtopic":"360-10","subtopic_title":"Overall","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"360-10-25-1","para":"25-1","html":"
See the Impairment or Disposal of Long-Lived Assets Subsection of Section 360-10-45 for a discussion of held-for-use and held-for-sale classifications of assets and asset groups.
","snippet":"See the Impairment or Disposal of Long-Lived Assets Subsection of Section 360-10-45 for a discussion of held-for-use and held-for-sale classifications of assets and asset groups.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:539375b991ae89a20d87042816b11a3f304d2057167ada8c33c3c09879e60b2f","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0aaf8f8cf990d4bad23d2bb72478dcbd9a4ff7e10524ab4f4f09aac622daec9f","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}},{"block":null,"heading":"Acquisition of the Residual Value in Leased Assets by a Third Party","paragraphs":[{"citation":"360-10-25-2","para":"25-2","html":"
This Section provides guidance on how a third-party entity shall account for the following:
  1. a
    The acquisition from a lessor of the unconditional right to own and possess, at the end of the lease term, an asset subject to a lease
  2. b
    The acquisition of the right to receive all, or a portion, of the proceeds from the sale of a leased asset at the end of the lease term.
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At the date the rights in the preceding paragraph are acquired, both transactions involve a right to receive, at the end of the lease term, all, or a portion, of any future benefit to be derived from the leased asset and shall be accounted for as the acquisition of an asset. Both transactions are referred to as the acquisition of an interest in the residual value of a leased asset.
","snippet":"At the date the rights in the preceding paragraph are acquired, both transactions involve a right to receive, at the end of the lease term, all, or a portion, of any future benefit to be derived from the leased asset and…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dea06f871002d6770b3d60b8b01e8278d83a256a1005fbd95e7ccd5506449198","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}},{"citation":"360-10-25-4","para":"25-4","html":"
An interest in the residual value of a leased asset shall be recorded as an asset at the date the right is acquired.
","snippet":"An interest in the residual value of a leased asset shall be recorded as an asset at the date the right is acquired.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e072963866c067f980e7988e9e2d5b31ae58e441e54570b725f001a232299140","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d5f442a5c3aa1f557247735b4fd96f3419cb5e9b0c914f28d869e9579d858ed9","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}},{"block":null,"heading":"Planned Major Maintenance Activities","paragraphs":[{"citation":"360-10-25-5","para":"25-5","html":"
The use of the accrue-in-advance (accrual) method of accounting for planned major maintenance activities is prohibited in annual and interim financial reporting periods.
","snippet":"The use of the accrue-in-advance (accrual) method of accounting for planned major maintenance activities is prohibited in annual and interim financial reporting periods.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fbb65da88c2c0d566c6228196c8d8197d8a1243c444400de17a481528c67339","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e0a4963a1462a2995804daa12a4d0725e6217e70b54a3c89bf33a4225e7ea36","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}},{"block":null,"heading":"Business Combinations","paragraphs":[{"citation":"360-10-25-6","para":"25-6","html":"
See Section 805-20-25 for general guidance related to the recognition of the acquisition of property, plant, and equipment in a business combination.
","snippet":"See Section 805-20-25 for general guidance related to the recognition of the acquisition of property, plant, and equipment in a business combination.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7eebba0b77168f6a4fd2a76689829c648eb94fc9cd7f52a334d484a6662bab4","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:121210685b8717cbb9af38ec17642e4322c0f28c9dbfd63a65e71729d9172104","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:57e8334d07224541abbced38fc219d57f24a9b92ef087be94c935d783a3e83b9","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:57e8334d07224541abbced38fc219d57f24a9b92ef087be94c935d783a3e83b9","downloaded_from":"2026-09-10T00:05:48.482Z","last_downloaded_at":"2026-09-10T00:05:48.482Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482251","source_sha256":"ee40513ff422c7f00ed5385118d29bf18b48180db319565f5fbebdef08fed26f"}}