The headline sounds like a plot from a science fiction novel—perhaps funding a cantina on Tatooine. Yet, extraterrestrial infrastructure is already surfacing in real accounting discussions.

During a March 2026 meeting of the Financial Accounting Standards Advisory Council (FASAC), advisers tackled a practical hypothetical: If a commercial enterprise builds something on the moon, how do you account for it?

While the session centered on terrestrial issues like artificial intelligence, off-planet business assets stole the spotlight.

The Short Answer: Established Frameworks Apply

Surprisingly, the initial consensus was remarkably straightforward.

Current accounting standards (GAAP) remain fully applicable, even outside our atmosphere.

Whether constructing a lunar lab or a satellite network, the project is treated as a standard long-term asset. Costs require capitalization, the asset undergoes depreciation, and it faces impairment testing if conditions shift.

From a technical standpoint, this activity falls squarely under established guidance such as ASC 360 (Property, Plant, and Equipment).

The Real Challenge: Defensible Valuation of the Unknown

At SULLIVAN & COMPANY CPA INC., we know the rules themselves are rarely the primary obstacle. The true friction lies in estimating the inputs.

One FASAC participant summarized the dilemma perfectly: How exactly do you calculate the useful life of a lunar facility?

Here on Earth, our valuation models rely on historical precedent, scheduled maintenance, and predictable environmental factors. In space, analysts must account for unprecedented variables, such as:

• Heavy radiation exposure
• Extreme, unpredictable wear and tear
• Nonexistent or highly restricted repair access
• Rapidly advancing, disruptive technology

Such extreme variables make forming defensible baseline assumptions highly complex and open to scrutiny.

This Is Not a Distant Hypothetical

Space-based commerce is not reserved for the distant future. Major investments are currently flowing into commercial space stations and lunar exploration initiatives.

For instance, NASA’s Artemis program is aiming to establish a sustainable human presence on the moon, paving the way for commercial infrastructure. With a crew assembled for the inaugural mission, these accounting questions are a matter of “when,” not “if.”

Revenue Recognition and Asset Retirement

If an organization monetizes a lunar asset, existing rules apply. Common scenarios include:

• Selling satellite communications bandwidth
• Leasing specialized lunar research space
• Licensing proprietary orbital imagery

These income streams fall strictly under ASC 606 (Revenue Recognition)—the exact same framework utilized by terrestrial corporations.

Additionally, what happens when space equipment reaches the end of its utility? Liabilities could entail:

• Deorbiting end-of-life satellites
• Safely abandoning lunar hardware
• Actively mitigating orbital debris

Just like dismantling an Earth-bound factory, these scenarios fall under ASC 410 (Asset Retirement Obligations), requiring complex estimates.

What This Teaches Us About Complex Assets Today

Most high-net-worth individuals and family offices in the San Francisco Bay Area won’t be appraising moon bases anytime soon. However, navigating extreme uncertainty in disruptive sectors is a daily reality.

Whether analyzing unprecedented AI investments or valuing intricate entity structures during high-stakes estate litigation, the challenge remains identical: How do you build an airtight valuation when historical precedent is unavailable?

At SULLIVAN & COMPANY CPA INC., led by Brian A. Sullivan, CPA/ABV & CFE, we turn complex financial unknowns into clear strategies. Whether defending positions under audit, managing forensic disputes, or planning generational wealth transfers, the need for rigorous analysis remains constant. The professional judgment simply requires deeper technical expertise.

Contact our team in Burlingame today to schedule a strategic consultation for your complex valuation, forensic, or estate tax planning needs.