# ASC 360-908: Property, Plant, and Equipment — Airlines Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/908/) 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): 2026-09-10T00:07:28.720Z to 2026-09-10T00:07:56.986Z Record version: sha256:339983c8b07867b9c39ec1c0a09e7ec6be86ccea09029e0dd14e363e045ae04b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908: Property, Plant, and Equipment — Airlines ### Machine-generated study aids ```json { "summary": "ASC 360-908 governs property, plant, and equipment accounting unique to airlines: unit versus group depreciation, rotable parts, airframe modifications, and airframe/engine overhauls. Its core rules are that modifications enhancing an aircraft's usefulness must be capitalized and depreciated over the shorter of the aircraft's or the modification's useful life, and that overhauls must be accounted for under one of three permitted methods—direct expensing, built-in overhaul, or deferral—with the accrue-in-advance (accrual) method prohibited.", "key_points": [ "A depreciation method may be applied to a single asset (unit method, typically aircraft and engines with large unit costs) or to a homogeneous pool (group method, typically rotable parts and assemblies), with ease of application being the basis of selection (360-908-35-1).", "Rotable parts and assemblies of significant value are classified with flight equipment as fixed assets (360-908-45-1) and are normally depreciated over their useful or service lives under a group method (360-908-35-2).", "Costs of interior configuration modifications that enhance the usefulness of the aircraft shall be capitalized (360-908-25-1) and depreciated over the estimated useful life of the aircraft or of the modification, whichever is less (360-908-35-3).", "Air carriers must adopt a method that recognizes overhaul expense in the appropriate period; permitted methods are direct expensing (908-720-25-3), the built-in overhaul method, and the deferral method, and the accrue-in-advance method is prohibited in annual and interim periods (360-908-25-2; 360-10-25-5).", "Under the built-in overhaul method, aggregate aircraft cost is segregated into components depreciated over the aircraft's useful life and an overhaul component that is set up separately and amortized to the date of the initial overhaul; each subsequent overhaul cost is then capitalized and amortized to the next overhaul (360-908-30-2; 360-908-35-5).", "Under the deferral method, the actual cost of each overhaul is capitalized and amortized to the next overhaul (360-908-30-3; 360-908-35-6).", "On replacement, the cost of the replaced asset net of accumulated depreciation and anticipated recovery value is charged to income in the current period, using estimates where detailed records are inadequate (360-908-40-1); manufacturer purchase incentive credits are accounted for under 705-20-25-1 through 25-5, or as a lease incentive under Topic 842 if the aircraft is leased (360-908-55-1)." ], "categories": [ "Inventory and PP&E", "Subsequent measurement", "Industry-specific", "Recognition" ], "audience_level": "intermediate", "student_note": "Airlines are the classic example of component depreciation and of the prohibition on accruing maintenance before it occurs; the most common error is assuming an airline may build a reserve for future overhauls—the accrue-in-advance method is banned, and only direct expensing, built-in overhaul, or deferral is permitted (and the chosen method must be applied consistently in interim and annual periods).", "related_topics": [ "908-720", "360-10", "705-20", "842", "908-360" ], "key_concepts": [ "unit depreciation", "group depreciation", "rotable parts", "airframe modifications", "built-in overhaul method", "deferral method", "planned major maintenance activities", "manufacturer purchase incentives" ] } ``` Source downloaded (UTC): 2026-09-10T00:07:28.720Z to 2026-09-10T00:07:28.720Z Record version: sha256:921ae5752a77d916c5a5c2ecb74c1abf06204a3e8c3043beebccc070227b0442 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/360/908/#00-status) SEC content: no ##### [360-908-00-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:28.720Z to 2026-09-10T00:07:28.720Z Record version: sha256:e9634983671e16671951f71a9272a49a2b93a69fd5165058f9ee9c15388cde1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Cash ConsiderationSupersededAccounting Standards Update No. 2014-0905/28/2014
908-360-55-1AmendedAccounting Standards Update No. 2016-0202/25/2016
908-360-55-1AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T00:07:31.218Z to 2026-09-10T00:07:31.218Z Record version: sha256:37b8cf1533cd41536ded1698840612025e81db1ceb90e39b30699af4289a0b2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/360/908/#05-overview-and-background) SEC content: no ##### [360-908-05-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:31.218Z to 2026-09-10T00:07:31.218Z Record version: sha256:463ea53fe9f5c2b25a47d226fcb2a35ebe31f1a61a62921d2cdf0286b3f13b1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for accounting for certain property, plant, and equipment assets for entities in the airline industry. It includes guidance on: 1. a The use of unit and group depreciation methods. 2. b Rotable parts. [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).") relate to flight equipment. 3. c [Airframe](https://asc.understandingaccounting.org/glossary/a/#airframe "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).") modifications. Airlines have undertaken major programs to modify interior configurations of certain aircraft types—including the reconfiguration and replacement of seats, galley equipment, and storage space—in response to market forces and passenger demands. Since deregulation, such changes have been more frequent. 4. d Airframe and engine overhauls. As a result of overhaul requirements established by the Federal Aviation Administration, aircraft airframes and engines must be overhauled within specific intervals. The value and usefulness of an aircraft can be heavily dependent on its stage of overhaul. For accounting purposes, airframe and aircraft engine overhauls encompass all inspections or replacements of major components, which the civil air regulations require at specific maximum periodic intervals to recertify that the frame or engine is completely airworthy. #### Purchase Incentives ##### [360-908-05-2](https://asc.understandingaccounting.org/asc/360/908/#360-908-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:31.218Z to 2026-09-10T00:07:31.218Z Record version: sha256:9ea67388b0ebdc71528ed082e4e4c74195278cc19b77798772720e6e98d6e691 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Airlines frequently negotiate purchase incentives with aircraft manufacturers whereby, as an inducement to purchase a particular manufacturer's aircraft, the manufacturer will issue credits, which can be used for the purchase of [spare parts](https://asc.understandingaccounting.org/glossary/s/#spare-parts "Parts, appurtenances, and accessories of aircraft (other than aircraft engines and propellers), of aircraft engines (other than propellers), of propellers, or of appliances that are maintained for installation or use in an aircraft, aircraft engine, propeller, or appliance but that are not yet installed or attached.") but may not be applied as part of the purchase price of aircraft. Examples of other incentives are guaranteed trade-in values and purchase credits for flight crew training equipment (for example, flight simulators). Source downloaded (UTC): 2026-09-10T00:07:34.695Z to 2026-09-10T00:07:34.695Z Record version: sha256:2edc252ab13ade058e98396600cb93aab763886a9c56d578b0b615ffa079b107 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/360/908/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [360-908-15-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:34.695Z to 2026-09-10T00:07:34.695Z Record version: sha256:e4ef9120ca71a151f4971971f36da5154060d039e03dc55fdadbba9af46e13a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance relating to certain property, plant, and equipment assets for entities in the airline industry. #### Transactions ##### [360-908-15-2](https://asc.understandingaccounting.org/asc/360/908/#360-908-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:34.695Z to 2026-09-10T00:07:34.695Z Record version: sha256:8ba0acf1794c1cd5a766864b1b697953a0dd7621f156f168bad6cfbd602ee779 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following transactions and activities: 1. a The cost of routine replacement of minor parts and servicing or inspection of airframes and aircraft engines 2. b Costs accounted for as restoration of assets, such as extraordinary costs associated with the renewal of major structural parts beyond the scope of normal periodic overhauls 3. c Other costs with a life span similar to the depreciable service life of the related [airframe](https://asc.understandingaccounting.org/glossary/a/#airframe "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).") or aircraft engine. Source downloaded (UTC): 2026-09-10T00:07:41.491Z to 2026-09-10T00:07:41.491Z Record version: sha256:55bbb6eb5875b72cce838f10e61dd171ee1b8dfbdcaa737a4d63488ad684405d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/360/908/#25-recognition) SEC content: no #### Airframe Modifications ##### [360-908-25-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:41.491Z to 2026-09-10T00:07:41.491Z Record version: sha256:89ccd4c2cdd3355a9f0a658344097a68b3a90244b77d834a9a407a18c74ccca5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the modifications of interior configurations of certain aircraft types enhance the usefulness of the aircraft, the costs associated with the changes shall be capitalized. #### Overhaul Costs ##### [360-908-25-2](https://asc.understandingaccounting.org/asc/360/908/#360-908-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:41.491Z to 2026-09-10T00:07:41.491Z Record version: sha256:f045d4c7fcda641f915252f1e206b68f910d062f02854f8e6d6fe4a3b9cd81dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Air carriers shall adopt an accounting method that recognizes overhaul expenses in the appropriate period. This may result in different methods for different aircraft, as well as different methods for [airframe](https://asc.understandingaccounting.org/glossary/a/#airframe "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).") overhauls and engine overhauls. The method chosen shall recognize, among other things, the carrier's operating practices with respect to airframe and engine overhauls. The following accounting methods are permitted: 1. a The direct expensing method, addressed in Subtopic 908-720 (see paragraph [908-720-25-3](https://asc.understandingaccounting.org/asc/720/908/#720-908-25-3)) 2. b The built-in overhaul method, addressed in this Subtopic 3. c The deferral method, addressed in this Subtopic. As indicated in paragraph [360-10-25-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-25-5), 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. ##### [360-908-25-3](https://asc.understandingaccounting.org/asc/360/908/#360-908-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:41.491Z to 2026-09-10T00:07:41.491Z Record version: sha256:8e1cb0b4c39e304468ec5fb7aca9e5317e6bc0a7b1c086c5ae2bb0cbfa30002a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [360-908-25-4](https://asc.understandingaccounting.org/asc/360/908/#360-908-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:41.491Z to 2026-09-10T00:07:41.491Z Record version: sha256:93933a8bb99e9b3bb4251a55ffa94ed040b72688eca0fb21cbc280177eabf681 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-10T00:07:44.908Z to 2026-09-10T00:07:44.908Z Record version: sha256:0180e3b192393072dca09b7c5f43726cdd8cfe4a3beac1347731c84a33f36a88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/360/908/#30-initial-measurement) SEC content: no #### Overhaul Costs ##### [360-908-30-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:44.908Z to 2026-09-10T00:07:44.908Z Record version: sha256:a9b747f5b081358b12ffcc956a910b2db971234752d3063244d10ebcedd118ed 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)). ##### [360-908-30-2](https://asc.understandingaccounting.org/asc/360/908/#360-908-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:44.908Z to 2026-09-10T00:07:44.908Z Record version: sha256:f6bd7012374e04bca0799f2fa48e3e0832f6a097e9e9e1597884747a0a478275 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Thus, the estimated cost of the overhaul component included in the purchase price shall be set up separately from the cost of the [airframe](https://asc.understandingaccounting.org/glossary/a/#airframe "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).") and engines. ##### [360-908-30-3](https://asc.understandingaccounting.org/asc/360/908/#360-908-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:44.908Z to 2026-09-10T00:07:44.908Z Record version: sha256:c2dcf8e22db5f06827b718eeeb2471c18c9949cd37536485f1b8b8f7302c3d63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the deferral method, the actual cost of each overhaul shall be capitalized. 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. Source downloaded (UTC): 2026-09-10T00:07:51.909Z to 2026-09-10T00:07:51.909Z Record version: sha256:ace88a9c79cea5da6e5f360adc46e62494486565720a4993d8bd399006cc07e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/360/908/#40-derecognition) SEC content: no #### Airframe Modifications ##### [360-908-40-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:51.909Z to 2026-09-10T00:07:51.909Z Record version: sha256:ef45aca776909ef359c7a8866f8e3f4661461089de2beb9ab49aa3cbc8c01b51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The cost of the replaced asset net of accumulated depreciation and anticipated recovery value shall be charged to income in the current period. However, detailed records may often be inadequate to permit identification of the cost of the replaced asset; therefore, estimates may be required. Source downloaded (UTC): 2026-09-10T00:07:54.458Z to 2026-09-10T00:07:54.458Z Record version: sha256:92caab81b45dd37945fc715e9aabf6d6df2503b70c2a4624a03244c1d20d1160 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/360/908/#45-other-presentation-matters) SEC content: no #### Rotable Parts ##### [360-908-45-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:54.458Z to 2026-09-10T00:07:54.458Z Record version: sha256:1e3f24ed8823ad8e97e307396c06cbe002864a41c6e3d040e0deb62e659ef8e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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 of significant value are classified along with flight equipment as fixed assets. #### Overhaul Costs and Planned Major Maintenance Activities ##### [360-908-45-2](https://asc.understandingaccounting.org/asc/360/908/#360-908-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:54.458Z to 2026-09-10T00:07:54.458Z Record version: sha256:b6f6c175e4663ffc5a1d8c0a1ac69aa096766ed4d1a48bb0716be93e9cf99caa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [360-10-45-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-1), an entity shall apply the same method of accounting for planned major maintenance activities in annual and interim financial reporting periods. Source downloaded (UTC): 2026-09-10T00:07:56.986Z to 2026-09-10T00:07:56.986Z Record version: sha256:871a8df06fc4a3fb2a7eaa1a048023ddca3e2bcf671817947f5a17a470eaaba8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-908-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/360/908/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [360-908-55-1](https://asc.understandingaccounting.org/asc/360/908/#360-908-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:56.986Z to 2026-09-10T00:07:56.986Z Record version: sha256:01973652cd3e6de9eb1f5b4f81d8f7a6a1f9402f4669f997ee30d81eddd9d7de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Credit received as a purchase incentive from an aircraft manufacturer to induce a purchase of that manufacturer's aircraft should be accounted for in accordance with paragraphs [705-20-25-1 through 25-5](https://asc.understandingaccounting.org/asc/705/20/#705-20-25-1) for the aircraft or, if the aircraft is leased, as a lease incentive in accordance with Topic 842.