{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/360/908/#30-initial-measurement","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":"360-908","subtopic_title":"Airlines","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Overhaul Costs","paragraphs":[{"citation":"360-908-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This guidance addresses the following methods of accounting for overhaul expenses:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Built-in overhaul method</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Deferral method.</div></li></ol>The direct expensing method is addressed in Subtopic <a altsource=\"GUID-4C872F9F-A508-4CF7-AC6A-16C8692BC4E2.ditamap\" class=\"ditamap\">908-720</a> (see paragraph <a href=\"/asc/720/908/#720-908-25-3\" class=\"xref\">908-720-25-3</a>).</div></div>","snippet":"This guidance addresses the following methods of accounting for overhaul expenses:\n(a) Built-in overhaul method\n(b) Deferral method.\nThe direct expensing method is addressed in Subtopic 908-720 (see paragraph 908-720-25-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9b747f5b081358b12ffcc956a910b2db971234752d3063244d10ebcedd118ed","downloaded_from":"2026-09-10T00:07:44.908Z","last_downloaded_at":"2026-09-10T00:07:44.908Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478535","source_sha256":"4d20c808dc3a5f09e789029d52b60d68627b51c63fd66ab40627786c06b01d9d"}},{"citation":"360-908-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_18217FC9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The built-in overhaul method is based on segregation of the aggregate aircraft costs into those components that shall be depreciated over the useful life of the aircraft and those that require overhaul at periodic intervals. </span></span><span class=\"sfragment\" id=\"sfr_182180F8-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Thus, the estimated cost of the overhaul component included in the purchase price shall be set up separately from the cost of the <a href=\"/glossary/a/#airframe\" class=\"term\" title=\"The structure of an aircraft, excluding engines and accessories. The principal parts of the airframe of an airplane include the fuselage (the body), wings, empennage (the assembly of stabilizing and control surfaces at the tail), landing gear, and nacelles or pods (engine housings).\"><span>airframe</span></a> and engines. </span></span></div></div>","snippet":"The built-in overhaul method is based on segregation of the aggregate aircraft costs into those components that shall be depreciated over the useful life of the aircraft and those that require overhaul at periodic interv…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6bd7012374e04bca0799f2fa48e3e0832f6a097e9e9e1597884747a0a478275","downloaded_from":"2026-09-10T00:07:44.908Z","last_downloaded_at":"2026-09-10T00:07:44.908Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478535","source_sha256":"4d20c808dc3a5f09e789029d52b60d68627b51c63fd66ab40627786c06b01d9d"}},{"citation":"360-908-30-3","para":"30-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_182181CE-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Under the deferral method, the actual cost of each overhaul shall be capitalized. </span></span></div></div>","snippet":"Under the deferral method, the actual cost of each overhaul shall be capitalized.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2dcf8e22db5f06827b718eeeb2471c18c9949cd37536485f1b8b8f7302c3d63","downloaded_from":"2026-09-10T00:07:44.908Z","last_downloaded_at":"2026-09-10T00:07:44.908Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478535","source_sha256":"4d20c808dc3a5f09e789029d52b60d68627b51c63fd66ab40627786c06b01d9d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:827f159d100062083609bc9d806b54d0714fb4d50625a217dd0652f19db656c6","downloaded_from":"2026-09-10T00:07:44.908Z","last_downloaded_at":"2026-09-10T00:07:44.908Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478535","source_sha256":"4d20c808dc3a5f09e789029d52b60d68627b51c63fd66ab40627786c06b01d9d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0180e3b192393072dca09b7c5f43726cdd8cfe4a3beac1347731c84a33f36a88","downloaded_from":"2026-09-10T00:07:44.908Z","last_downloaded_at":"2026-09-10T00:07:44.908Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478535","source_sha256":"4d20c808dc3a5f09e789029d52b60d68627b51c63fd66ab40627786c06b01d9d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0180e3b192393072dca09b7c5f43726cdd8cfe4a3beac1347731c84a33f36a88","downloaded_from":"2026-09-10T00:07:44.908Z","last_downloaded_at":"2026-09-10T00:07:44.908Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478535","source_sha256":"4d20c808dc3a5f09e789029d52b60d68627b51c63fd66ab40627786c06b01d9d"}}