# ASC 360-908-35: Property, Plant, and Equipment — Airlines — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/908/#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): 2026-09-10T00:07:47.920Z to 2026-09-10T00:07:47.920Z Record version: sha256:0f6b8f61a6fbcd6c715a3ca54ddc6ccffa06c115d6b02ab08a6171b446a0ef80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/360/908/#35-subsequent-measurement) SEC content: no #### Depreciation Methods ##### [360-908-35-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:47.920Z to 2026-09-10T00:07:47.920Z Record version: sha256:709d7a212f408819f4cd1bd6585436806972250a8fb8adf16fa46d921f562776 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/a/#air-carrier "Any entity that undertakes, whether directly or indirectly or by a lease or any other arrangement, to engage in air transportation.") 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](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. #### Rotable Parts ##### [360-908-35-2](https://asc.understandingaccounting.org/asc/360/908/#360-908-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:47.920Z to 2026-09-10T00:07:47.920Z Record version: sha256:1d5e26ef10280a17b5b9b57eaed705083ac7877dc0c44eb3ffa74c21df3bc0b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Rotable parts and assemblies are normally depreciated over their useful lives or service lives according to a group method of depreciation. #### Airframe Modifications ##### [360-908-35-3](https://asc.understandingaccounting.org/asc/360/908/#360-908-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:47.920Z to 2026-09-10T00:07:47.920Z Record version: sha256:f985c0c1476414173076c2fe4a933ccddc5695364fe063bf1d77ec29e22dd176 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Airframe modifications](https://asc.understandingaccounting.org/glossary/a/#airframe-modifications "Modifications made to interior configurations of certain aircraft types—including the reconfiguration and replacement of seats, galley equipment, and storage space.") shall be depreciated over the estimated useful life of the aircraft or the modifications, whichever is less. #### Overhaul Costs ##### [360-908-35-4](https://asc.understandingaccounting.org/asc/360/908/#360-908-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:47.920Z to 2026-09-10T00:07:47.920Z Record version: sha256:e062576db1a1a00489cee9092c126088ffd7f9010f28dd17d3b74ff202f43c7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/720/908/#720-908-25-3)). ##### [360-908-35-5](https://asc.understandingaccounting.org/asc/360/908/#360-908-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:47.920Z to 2026-09-10T00:07:47.920Z Record version: sha256:c3a9484030eb997ac290df25c4430a9f6666f661f1f4dccb6224358b658725ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [360-908-35-6](https://asc.understandingaccounting.org/asc/360/908/#360-908-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:47.920Z to 2026-09-10T00:07:47.920Z Record version: sha256:d2a530433984474cfa3f46dd123b6d0575697b6753a82ff0c5c844d6248fdbca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the deferral method, the actual cost of each overhaul shall be amortized to the next overhaul.