# ASC 360-980-25: Property, Plant, and Equipment — Regulated Operations — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/360/980/#25-recognition)

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): 2026-09-10T00:13:12.506Z to 2026-09-10T00:13:12.506Z

Record version: sha256:4a13e3bf1c8dd8977ebebffab80c23c179b8282a59bec5c48e0b42d5333d2a8e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 360-980-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/360/980/#25-recognition)

SEC content: no

#### Allowance for Funds Used During Construction

##### [360-980-25-1](https://asc.understandingaccounting.org/asc/360/980/#360-980-25-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:13:12.506Z to 2026-09-10T00:13:12.506Z

Record version: sha256:64eb96b3b81e76432ec15ef30a065f33b3a4cf638c3b19e555ba36c672256645

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Paragraph [980-835-25-1](https://asc.understandingaccounting.org/asc/835/980/#835-980-25-1) requires an [allowance for funds used during construction](https://asc.understandingaccounting.org/glossary/a/#allowance-for-funds-used-during-construction "The cost of financing construction as financed partially by borrowings and partially by equity, capitalized as part of the cost of plant and equipment pursuant to requirements of the regulator."), including a designated cost of equity funds, to be capitalized in specified circumstances as part of the acquisition cost of the related asset. That cost shall be capitalized under those circumstances only if its subsequent inclusion in [allowable costs](https://asc.understandingaccounting.org/glossary/a/#allowable-costs "All costs for which revenue is intended to provide recovery. Those costs can be actual or estimated. In that context, allowable costs include interest cost and amounts provided for earnings on shareholders' investments.") for rate-making purposes is probable.

##### [360-980-25-2](https://asc.understandingaccounting.org/asc/360/980/#360-980-25-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:13:12.506Z to 2026-09-10T00:13:12.506Z

Record version: sha256:b6f9b98a9b6dd7a01848ed8ee89e13c5ee612a9e77805ed314f5f0c902ccdc0b

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/).