ASC

ASC 845-908

Airlines

845 Nonmonetary Transactions

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In brief

IntermediateRecognitionInitial measurementIntangibles and goodwillIndustry-specific

This Subtopic addresses how airlines account for exchanges of take-off and landing slots. Slots received in an exchange with another airline are nonmonetary assets and must be recorded under the general nonmonetary transaction guidance in Topic 845 (845-908-25-1), with related intangible asset guidance in Subtopic 908-350. Its scope is the same as the airline industry Overall Subtopic scope in Section 908-10-15.

Key points (5)
  • The Subtopic provides accounting guidance for the exchange of take-off and landing slots by entities in the airline industry (845-908-05-1).
  • Scope follows the airline industry Overall Subtopic, Section 908-10-15 (845-908-15-1).
  • Take-off and landing slots acquired in an exchange with another airline are nonmonetary assets (845-908-25-1).
  • Slots acquired in such exchanges shall be recorded in conformity with Topic 845, the general nonmonetary transactions guidance (845-908-25-1).
  • Subtopic 908-350 provides related guidance on airline intangible assets such as slots (845-908-25-1).

For students. A short, cross-reference-heavy Subtopic: the only real rule is that airport slots swapped between airlines are nonmonetary assets governed by Topic 845, so you must go to 845-10 to decide whether the exchange has commercial substance (fair value) or is recorded at carrying amount. Students often assume slot swaps are simply recorded at fair value; the general 845 exceptions still apply.

take-off and landing slotsnonmonetary assetnonmonetary exchangeairline industryexchange of similar assetsintangible assets

Machine-generated study aid for ASC 845-908. Check the source paragraphs below.

845-908-05Overview and Background

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845-908-05-1
This Subtopic provides accounting guidance for the exchange of take-off and landing slots for entities in the airline industry.

845-908-15Scope and Scope Exceptions

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Overall Guidance

845-908-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 908-10-15.

845-908-25Recognition

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845-908-25-1
When an airline exchanges take-off or landing slots with another airline, the slots acquired in the exchange are nonmonetary assets that shall be recorded in conformity with Topic 845. See also Subtopic 908-350.

Related subtopics