# ASC 720-908-05: Other Expenses — Airlines — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/908/#05-overview-and-background)

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): 2026-09-10T01:09:28.531Z to 2026-09-10T01:09:28.531Z

Record version: sha256:80a7f4d461a7312c4512036c428642ef7a058587977b96547ff318c7f3407f7f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 720-908-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/720/908/#05-overview-and-background)

SEC content: no

##### [720-908-05-1](https://asc.understandingaccounting.org/asc/720/908/#720-908-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:09:28.531Z to 2026-09-10T01:09:28.531Z

Record version: sha256:dff234cd413fd60827a67129ebaae0dd6a80ee7bf73638d71afc314db19f6852

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Subtopic provides accounting guidance for the following costs for entities in the airline industry:

1.  a
    
    [Developmental costs](https://asc.understandingaccounting.org/glossary/d/#developmental-costs "Developmental costs include those types of costs directly related to the development of new routes (or extension of existing routes), such as advertising and promotion expenses, related travel and incidental expenses, and expenses of regulatory proceedings."), including those directly related to the development of new routes
    
2.  b
    
    [Preoperating costs](https://asc.understandingaccounting.org/glossary/p/#preoperating-costs "Preoperating costs include flight crew training, maintenance training, prerevenue flight expenses, insurance, and depreciation. Preoperating costs relate directly to specific preoperating projects, such as the preparation for operation of new routes or integration of new types of aircraft."), including initial preparation costs for a new route or new type of aircraft
    
3.  c
    
    Overhaul costs using the direct expensing method.