{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/360/908/#35-subsequent-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":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Depreciation Methods","paragraphs":[{"citation":"360-908-35-1","para":"35-1","html":"
A depreciation method may be applied to a single asset (unit depreciation) or to a group or pool of assets that are similar in nature (group depreciation). An air carrier can use unit or group depreciation methods on different groups of assets. The ease of application is the basis of selection between the two methods.
  1. a
    Unit method. Under the unit method, the airline depreciates the cost of the individual items of property and equipment. Unit depreciation is generally used for fixed assets, such as aircraft and engines, that have large unit costs and are comparatively few in number.
  2. b
    Group method. Under the group method, the airline depreciates the aggregate cost of a group of equipment that is fairly homogeneous, despite differences in the service lives of individual items. Group depreciation usually is applied to groups of assets that are significant in number but have relatively small unit values, such as rotable parts and assemblies.
","snippet":"A depreciation method may be applied to a single asset (unit depreciation) or to a group or pool of assets that are similar in nature (group depreciation). An air carrier can use unit or group depreciation methods on dif…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:709d7a212f408819f4cd1bd6585436806972250a8fb8adf16fa46d921f562776","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:11a60747bf3906e192f00b87bc8f5769f362aa7458ecd767ee3a01ce32eb83db","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}},{"block":null,"heading":"Rotable Parts","paragraphs":[{"citation":"360-908-35-2","para":"35-2","html":"
Rotable parts and assemblies are normally depreciated over their useful lives or service lives according to a group method of depreciation.
","snippet":"Rotable parts and assemblies are normally depreciated over their useful lives or service lives according to a group method of depreciation.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1d5e26ef10280a17b5b9b57eaed705083ac7877dc0c44eb3ffa74c21df3bc0b2","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e2d031ea6ad66903e9a7b7d2d62e2b759c7c53a880b0928bc3be34bc4e1ea79","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}},{"block":null,"heading":"Airframe Modifications","paragraphs":[{"citation":"360-908-35-3","para":"35-3","html":"
Airframe modifications shall be depreciated over the estimated useful life of the aircraft or the modifications, whichever is less.
","snippet":"Airframe modifications shall be depreciated over the estimated useful life of the aircraft or the modifications, whichever is less.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f985c0c1476414173076c2fe4a933ccddc5695364fe063bf1d77ec29e22dd176","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0dd2b342c0f9e7d7def853c39e403ea896427d5b5f0341dfe9a0a7e8171994c","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}},{"block":null,"heading":"Overhaul Costs","paragraphs":[{"citation":"360-908-35-4","para":"35-4","html":"
This guidance addresses the following methods of accounting for overhaul expenses:
  1. a
    Built-in overhaul method
  2. b
    Deferral method.
The direct expensing method is addressed in Subtopic 908-720 (see paragraph 908-720-25-3).
","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:e062576db1a1a00489cee9092c126088ffd7f9010f28dd17d3b74ff202f43c7f","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}},{"citation":"360-908-35-5","para":"35-5","html":"
The estimated cost of the overhaul component included in the aircraft purchase price shall be amortized to the date of the initial overhaul. The cost of the initial overhaul shall then be capitalized and amortized to the next overhaul, at which time the process shall be repeated.
","snippet":"The estimated cost of the overhaul component included in the aircraft purchase price shall be amortized to the date of the initial overhaul. The cost of the initial overhaul shall then be capitalized and amortized to the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3a9484030eb997ac290df25c4430a9f6666f661f1f4dccb6224358b658725ae","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}},{"citation":"360-908-35-6","para":"35-6","html":"
Under the deferral method, the actual cost of each overhaul shall be amortized to the next overhaul.
","snippet":"Under the deferral method, the actual cost of each overhaul shall be amortized to the next overhaul.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2a530433984474cfa3f46dd123b6d0575697b6753a82ff0c5c844d6248fdbca","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:741f913ae3b9d7961bedd4cabe8cd026309a8d1561b024856b7fcb384904195e","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f6b8f61a6fbcd6c715a3ca54ddc6ccffa06c115d6b02ab08a6171b446a0ef80","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f6b8f61a6fbcd6c715a3ca54ddc6ccffa06c115d6b02ab08a6171b446a0ef80","downloaded_from":"2026-09-10T00:07:47.920Z","last_downloaded_at":"2026-09-10T00:07:47.920Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478235","source_sha256":"ff35355475a0f41bd1fc10c5dd73803333053ec5f2e17780146363730f14682d"}}