{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/230/920/","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","number":"230-920","topic":"230","title":"Entertainment—Broadcasters","area":"Presentation","paragraphs":4,"summary":"This Subtopic tells broadcasters how to classify cash paid for program license rights in the statement of cash flows. Under 230-920-45-1, cash outflows to obtain rights under a license agreement for program material are operating activities, and the amortization of the capitalized license costs is included in the reconciliation of net income to net cash flows from operating activities.","concepts":["broadcaster licensee","license agreement for program material","program rights","operating activities classification","capitalized license costs","amortization add-back","indirect method reconciliation"],"categories":["Cash flows","Presentation","Industry-specific"],"level":"intermediate","topic_title":"Statement of Cash Flows","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"230-920-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL120155689-234784\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/glossary/b/#broadcaster\" class=\"term\" title=\"An entity or an affiliated group of entities that transmits radio or television program material.\"><span>Broadcaster</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2019-02/\" class=\"xref\">Accounting Standards Update No. 2019-02</a></td><td class=\"entry\">03/06/2019</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#license-agreement\" class=\"term\" title=\"A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.\"><span>License Agreement</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2019-02/\" class=\"xref\">Accounting Standards Update No. 2019-02</a></td><td class=\"entry\">03/06/2019</td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/230/920/#230-920-05-1\" class=\"xref\">920-230-05-1</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2019-02/\" class=\"xref\">Accounting Standards Update No. 2019-02</a></td><td class=\"entry\">03/06/2019</td></tr><tr><td class=\"entry\"><a href=\"/asc/230/920/#230-920-15-1\" class=\"xref\">920-230-15-1</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2019-02/\" class=\"xref\">Accounting Standards Update No. 2019-02</a></td><td class=\"entry\">03/06/2019</td></tr><tr><td class=\"entry\"><a href=\"/asc/230/920/#230-920-45-1\" class=\"xref\">920-230-45-1</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2019-02/\" class=\"xref\">Accounting Standards Update No. 2019-02</a></td><td class=\"entry\">03/06/2019</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nBroadcaster | Added | Accounting Standards Update No. 2019-02 | 03/06/2019 |\nLicense Agr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6fea0a3ff20811593cba618e64d33f4b806cbb762a60401d565ce927f07d9e92","downloaded_from":"2026-09-09T23:12:25.496Z","last_downloaded_at":"2026-09-09T23:12:25.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478095","source_sha256":"eec6d0c234c8319731505207055743bdb9219483813f3428a44b622688c8584d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78d36eee319622fe4e5dcd35535057a351f7f0371b8067ddff10f9e63adfc608","downloaded_from":"2026-09-09T23:12:25.496Z","last_downloaded_at":"2026-09-09T23:12:25.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not 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class=\"sfragment\" id=\"sfr_DA4D6FE2-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic provides guidance to a <a href=\"/glossary/b/#broadcaster\" class=\"term\" title=\"An entity or an affiliated group of entities that transmits radio or television program material.\"><span>broadcaster</span></a> licensee on the classification in the statement of cash flows of certain costs incurred for the rights acquired under a <a href=\"/glossary/l/#license-agreement\" class=\"term\" title=\"A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.\"><span>license agreement</span></a> for program material. This Subtopic also provides guidance for presenting the amortization of the capitalized costs of license agreements.</span></span> </div> </div>","snippet":"This Subtopic provides guidance to a broadcaster licensee on the classification in the statement of cash flows of certain costs incurred for the rights acquired under a license agreement for program material. This Subtop…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7609ce49b1ff0041affe8467c3ccea259f911eccd927fd274dbff3ee7d21aecb","downloaded_from":"2026-09-09T23:12:28.377Z","last_downloaded_at":"2026-09-09T23:12:28.377Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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id=\"sfr_DA58939E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-642099DD-C1B1-4F44-9A26-7A7404AFBB25.ditamap\" class=\"ditamap\">920-10-15</a>.</span></span> </div> </div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 920-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6906b3106b853845582ad4311ea98f972c102531ec05a5411aae55be0cdda584","downloaded_from":"2026-09-09T23:12:32.330Z","last_downloaded_at":"2026-09-09T23:12:32.330Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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class=\"sfragment\" id=\"sfr_DA645D32-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A <a href=\"/glossary/b/#broadcaster\" class=\"term\" title=\"An entity or an affiliated group of entities that transmits radio or television program material.\"><span>broadcaster</span></a> licensee shall report cash outflows for the costs incurred to obtain the rights acquired under a <a href=\"/glossary/l/#license-agreement\" class=\"term\" title=\"A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.\"><span>license agreement</span></a> for program material as operating activities in the statement of cash flows, and it shall include the amortization of the capitalized costs of license agreements for program material in the reconciliation of net income to net cash flows from operating activities.</span></span> </div> </div>","snippet":"A broadcaster licensee shall report cash outflows for the costs incurred to obtain the rights acquired under a license agreement for program material as operating activities in the statement of cash flows, and it shall i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ac5da43a9a474ffe561ae6a476cb6ff9f68f9db088c11d7c388ac1704c8fa80","downloaded_from":"2026-09-09T23:12:39.302Z","last_downloaded_at":"2026-09-09T23:12:39.302Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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Under 230-920-45-1, cash outflows to obtain rights under a license agreement for program material are operating activities, and the amortization of the capitalized license costs is included in the reconciliation of net income to net cash flows from operating activities.","key_points":["A broadcaster licensee reports cash outflows for costs incurred to obtain rights under a program material license agreement as operating activities, not investing activities (230-920-45-1).","Amortization of capitalized license agreement costs is included in the reconciliation of net income to net cash flows from operating activities (230-920-45-1).","The Subtopic addresses both classification of the cash outflows and presentation of the amortization of the capitalized costs (230-920-05-1).","Scope follows the Broadcasters Overall Subtopic scope in Section 920-10-15 (230-920-15-1)."],"categories":["Cash flows","Presentation","Industry-specific"],"audience_level":"intermediate","student_note":"Exam trap: program rights look like a long-lived asset purchase, so students classify the payments as investing — but GAAP requires operating classification for broadcasters, with the related amortization added back in the indirect-method reconciliation.","related_topics":["920-10","920-350","926-230","230-10"],"key_concepts":["broadcaster licensee","license agreement for program material","program rights","operating activities classification","capitalized license costs","amortization add-back","indirect method reconciliation"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:576d51c89d28c1b7c13d6d108b02807908af7109891d7fafce5e16863e2b96e8","downloaded_from":"2026-09-09T23:12:25.496Z","last_downloaded_at":"2026-09-09T23:12:39.302Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"230-926","title":"Entertainment—Films","topic_title":"Statement of Cash Flows","score":0.7968,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:656efeb9477b9a5689cb7bb30aa66c49a787e754f5743d000e043debcfadbb7c","downloaded_from":"2026-09-09T23:12:42.609Z","last_downloaded_at":"2026-09-09T23:12:53.235Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"350-920","title":"Entertainment—Broadcasters","topic_title":"Intangibles—Goodwill and Other","score":0.7925,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9aeb4ec67448afa822959c8a1c87f3b30eb5bfbc686aa4786e613afa985d1b49","downloaded_from":"2026-09-10T00:03:46.608Z","last_downloaded_at":"2026-09-10T00:04:16.226Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"405-920","title":"Entertainment—Broadcasters","topic_title":"Liabilities","score":0.7878,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5afe70234041eec5eb3b9f3c9c7fba04eef528b64c35ebb2e1833c253f29ab3f","downloaded_from":"2026-09-10T00:16:39.447Z","last_downloaded_at":"2026-09-10T00:17:01.205Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"920-10","title":"Overall","topic_title":"Entertainment—Broadcasters","score":0.7451,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee36ff8ff1fa748535b002a8ad4b137f664554469099d78903a4eb771f874d57","downloaded_from":"2026-09-10T02:10:41.501Z","last_downloaded_at":"2026-09-10T02:10:50.750Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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