{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/230/926/","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":"230-926","topic":"230","title":"Entertainment—Films","area":"Presentation","paragraphs":3,"summary":"This Subtopic tells film production and distribution entities how to classify certain film-related cash flows in the statement of cash flows. Cash outflows for film costs, participation costs, exploitation costs, and manufacturing costs are operating activities—not investing—even though film costs are capitalized as assets. Amortization of film costs is added back in the reconciliation of net income to net cash flows from operating activities.","concepts":["film costs","participation costs","exploitation costs","manufacturing costs","operating activities classification","amortization add-back","indirect method reconciliation"],"categories":["Presentation","Cash flows","Industry-specific"],"level":"intermediate","topic_title":"Statement of Cash Flows","sections":[{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"230-926-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance to entities in the film production and distribution industry on the classification in the statement of cash flows of certain costs incurred to produce and <a href=\"/glossary/m/#market\" class=\"term\" title=\"A distribution channel within a certain territory. Examples of markets include theatrical exhibition, home video, pay television, free television, and the licensing of film-related products.\"><span>market</span></a> <a href=\"/glossary/f/#films\" class=\"term\" title=\"Feature films, television specials, television series, or similar products (including animated films and television programming) that are sold, licensed, or exhibited, whether produced on film, video tape, digital, or other video recording format.\"><span>films</span></a>. This Subtopic also provides guidance for presenting the amortization of <a href=\"/glossary/f/#film-costs\" class=\"term\" title=\"Film costs include all direct negative costs incurred in the physical production of a film, as well as allocations of production overhead and capitalized interest in accordance with Topic 835. Examples of direct negative costs include costs of story and scenario; compensation of cast, directors, producers, extras, and miscellaneous staff; costs of set construction and operations, wardrobe, and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.\"><span>film costs</span></a> in the statement of cash flows.</div></div>","snippet":"This Subtopic provides guidance to entities in the film production and distribution industry on the classification in the statement of cash flows of certain costs incurred to produce and market films. This Subtopic also …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1418db07249830a82853849df8b7e8103491a87fbf827751e4b961307ce6aa5e","downloaded_from":"2026-09-09T23:12:42.609Z","last_downloaded_at":"2026-09-09T23:12:42.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479087","source_sha256":"2e86aa644e940be846d3a04695197772bcc357c1ac678f67c8e5063254125908"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbd8ed8a3eb2bfbebfe0f212503cd84e757d3694ff3ad325acfcc831e2e9e55f","downloaded_from":"2026-09-09T23:12:42.609Z","last_downloaded_at":"2026-09-09T23:12:42.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479087","source_sha256":"2e86aa644e940be846d3a04695197772bcc357c1ac678f67c8e5063254125908"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:905f553411b12f69258a4f82540c168f869253cbdf0ab6ccc8d2e71bad1a6c2f","downloaded_from":"2026-09-09T23:12:42.609Z","last_downloaded_at":"2026-09-09T23:12:42.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479087","source_sha256":"2e86aa644e940be846d3a04695197772bcc357c1ac678f67c8e5063254125908"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"230-926-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-CA6C9A61-7443-4351-BA4C-77AB8F838735.ditamap\" class=\"ditamap\">926-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 926-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e790c5be0279d0dc4761a9ab63c4ba409d23cc15f0cb3042d145df4b5f36bbd","downloaded_from":"2026-09-09T23:12:44.532Z","last_downloaded_at":"2026-09-09T23:12:44.532Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479153","source_sha256":"b226f693ec8254696d0135c1322ebbadae3f571b47e7a69b00bd7dd2703bf7ef"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b47668ce198f80a0a49f7cf87639577c0a5abda3afd3d123d38ad4d2be63d877","downloaded_from":"2026-09-09T23:12:44.532Z","last_downloaded_at":"2026-09-09T23:12:44.532Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479153","source_sha256":"b226f693ec8254696d0135c1322ebbadae3f571b47e7a69b00bd7dd2703bf7ef"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00ef1c0e5160148408ef1c0b7c944859fa414a56a2ad4594e137b37853063c41","downloaded_from":"2026-09-09T23:12:44.532Z","last_downloaded_at":"2026-09-09T23:12:44.532Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479153","source_sha256":"b226f693ec8254696d0135c1322ebbadae3f571b47e7a69b00bd7dd2703bf7ef"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Reporting Cash Flows","paragraphs":[{"citation":"230-926-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E16182C3-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity shall report cash outflows for <a href=\"/glossary/f/#film-costs\" class=\"term\" title=\"Film costs include all direct negative costs incurred in the physical production of a film, as well as allocations of production overhead and capitalized interest in accordance with Topic 835. Examples of direct negative costs include costs of story and scenario; compensation of cast, directors, producers, extras, and miscellaneous staff; costs of set construction and operations, wardrobe, and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.\"><span>film costs</span></a>, <a href=\"/glossary/p/#participation-costs\" class=\"term\" title=\"Parties involved in the production of a film may be compensated in part by contingent payments based on the financial results of a film pursuant to contractual formulas (participations) and by contingent amounts due under provisions of collective bargaining agreements (residuals). Such parties are collectively referred to as participants, and such costs are collectively referred to as participation costs. Participations may be given to creative talent, such as actors or writers, or to entities from whom distribution rights are licensed.\"><span>participation costs</span></a>, <a href=\"/glossary/e/#exploitation-costs\" class=\"term\" title=\"All direct costs (including marketing, advertising, publicity, promotion, and other distribution expenses) incurred in connection with the distribution of a film.\"><span>exploitation costs</span></a>, and manufacturing costs as operating activities in the statement of cash flows, and it shall include the amortization of film costs in the reconciliation of net income to net cash flows from operating activities. </span></span></div></div>","snippet":"An entity shall report cash outflows for film costs, participation costs, exploitation costs, and manufacturing costs as operating activities in the statement of cash flows, and it shall include the amortization of film …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a074635b06b9bf8baf1cbbd15a0a7b97b970badf63ead2fe8228ed47639e60a","downloaded_from":"2026-09-09T23:12:50.690Z","last_downloaded_at":"2026-09-09T23:12:50.690Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477628","source_sha256":"5eb9e4c0674a1a52efbb38fc6bebc02f304876435c87fc51c4be4c3a0d6d6a4d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc2a238edde8e20c04a25fdd0c664626f1c6592751bfe3d7e14e37abab89fb73","downloaded_from":"2026-09-09T23:12:50.690Z","last_downloaded_at":"2026-09-09T23:12:50.690Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477628","source_sha256":"5eb9e4c0674a1a52efbb38fc6bebc02f304876435c87fc51c4be4c3a0d6d6a4d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eae589ea6d23bc1655c2ac06b7625ff983eb22b1c5846c0670f5f73fb5f41a30","downloaded_from":"2026-09-09T23:12:50.690Z","last_downloaded_at":"2026-09-09T23:12:50.690Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477628","source_sha256":"5eb9e4c0674a1a52efbb38fc6bebc02f304876435c87fc51c4be4c3a0d6d6a4d"}}],"enrichment":{"summary":"This Subtopic tells film production and distribution entities how to classify certain film-related cash flows in the statement of cash flows. Cash outflows for film costs, participation costs, exploitation costs, and manufacturing costs are operating activities—not investing—even though film costs are capitalized as assets. Amortization of film costs is added back in the reconciliation of net income to net cash flows from operating activities.","key_points":["The Subtopic addresses classification of costs incurred to produce and market films and presentation of film cost amortization in the statement of cash flows (230-926-05-1).","Scope follows the Entertainment—Films Overall Subtopic scope in Section 926-10-15 (230-926-15-1).","Cash outflows for film costs, participation costs, exploitation costs, and manufacturing costs are reported as operating activities (230-926-45-1).","Amortization of film costs is included in the reconciliation of net income to net cash flows from operating activities (230-926-45-1)."],"categories":["Presentation","Cash flows","Industry-specific"],"audience_level":"intermediate","student_note":"The common misunderstanding is assuming that because film costs are capitalized as long-lived assets, the related cash outflows belong in investing activities; ASC 230-926-45-1 requires operating classification, with amortization added back under the indirect method.","related_topics":["926-10","926-20","230-10"],"key_concepts":["film costs","participation costs","exploitation costs","manufacturing costs","operating activities classification","amortization add-back","indirect method reconciliation"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a8019a1ca7d108c8814e3eac8ec30da8cac59e40b521a73c7d395deb7658bf57","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"}},"related":[{"number":"720-926","title":"Entertainment—Films","topic_title":"Other Expenses","score":0.8072,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e055c751d7a0af161009296fa91da467b472b1dda23d4961335941388a5f5771","downloaded_from":"2026-09-10T01:10:05.518Z","last_downloaded_at":"2026-09-10T01:10:20.638Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"705-926","title":"Entertainment—Films","topic_title":"Cost of Sales and Services","score":0.798,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:abca7345cd397ad88353becf7479f66323b1281d600d99b0725fccef327a5246","downloaded_from":"2026-09-10T00:56:26.941Z","last_downloaded_at":"2026-09-10T00:56:38.121Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"230-920","title":"Entertainment—Broadcasters","topic_title":"Statement of Cash Flows","score":0.7968,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cdfb2c40c28d2a124c6aa9dd088c4b718385cdf9e86c72d32e615f2eaba3972f","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"}},{"number":"926-10","title":"Overall","topic_title":"Entertainment—Films","score":0.7965,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc2b38d4b2f4cd6d2aa36e94c7b741788e11dbff0cd6df32d7a24f2e4bb37f43","downloaded_from":"2026-09-10T02:11:25.730Z","last_downloaded_at":"2026-09-10T02:11:34.569Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-926","title":"Entertainment—Films","topic_title":"Interest","score":0.7905,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:929a2385883d397fb9eb9c410b929274f90f7e1ae777989fbfee271a75d77f35","downloaded_from":"2026-09-10T01:50:45.748Z","last_downloaded_at":"2026-09-10T01:50:51.672Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"926-20","title":"Other Assets—Film Costs","topic_title":"Entertainment—Films","score":0.7749,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fdf37b12139700c3c910b03207ab83bf199a43bb53110b885806832edf9f96da","downloaded_from":"2026-09-10T02:11:36.539Z","last_downloaded_at":"2026-09-10T02:12:10.722Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"230-920","title":"Entertainment—Broadcasters","topic_title":"Statement of Cash 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