ASC

ASC Topic 908

Airlines

IntroductoryIndustry-specificRevenueInventory and PP&ECompensation and benefits1 subtopics · 10 paragraphs

Source downloaded: .Record version 81c6ff665287. Effective date must be checked in the source.

ASC 908 supplies only incremental, industry-specific guidance for airline entities; those entities must otherwise follow all applicable GAAP outside the Topic (908-10-15-1), and the guidance reaches passenger and cargo carriers, joint operations, and carriers providing ancillary services (maintenance, food service) to others (908-10-15-2; 908-10-05-2). The Overall subtopic (908-10) is essentially scope plus background, then routes the reader to subtopics on Segment Reporting, Inventory, Intangibles—Takeoff and Landing Slots, Property, Plant, and Equipment, Compensation—General, Other Expenses, and Nonmonetary Transactions (the revenue subparagraph 908-10-05-1(f) was superseded by ASU 2014-09, so airline revenue now follows Topic 606). The background explains why airlines are distinctive: an unusual revenue cycle of advance and third-party ticket sales where the sale date rarely matches the service date and tickets may be refundable, exchangeable, or usable on other carriers (908-10-05-3); mobile flight equipment that complicates custody and control (908-10-05-5); carrier-designed, FAA-demonstrated maintenance programs (908-10-05-6); and flight-crew compensation that varies with flying status, equipment, hours, time of day, and seniority (908-10-05-7). The single most important idea: Topic 908 is a supplement, not a substitute, for general GAAP.

incremental industry-specific guidanceairline entities scopeadvance ticket sales and revenue cyclemobile flight equipmenttakeoff and landing slotsairline maintenance programsflight personnel compensation

Subtopics

  1. 10Overall10 ¶

    ASC 908-10 is the Overall subtopic of the Airlines industry Topic; it lists the industry Subtopics (segment reporting, inventory, takeoff and landing slots, PP&E, compensation, other expenses, nonmonetary transactions) and describes the operating and accounting characteristics that make airlines distinctive. Its only substantive rule is scope: Topic 908 supplies incremental industry-specific guidance for airline entities, which must still comply with all other applicable GAAP (908-10-15-1). Background paragraphs highlight the complex revenue cycle (advance ticket sales, third-party sellers, refundable/exchangeable tickets), mobile flight equipment, maintenance programs, and flight-crew compensation.

    000515