# ASC 340-928-25: Other Assets and Deferred Costs — Entertainment—Music — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/340/928/#25-recognition) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:57:23.467Z to 2026-09-09T23:57:23.467Z Record version: sha256:52993503deb88731eff03b8de5edf789c8adee91cc788fc156a0dd713fd4dd48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-928-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/340/928/#25-recognition) SEC content: no #### Licensor Accounting ##### [340-928-25-1](https://asc.understandingaccounting.org/asc/340/928/#340-928-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:57:23.467Z to 2026-09-09T23:57:23.467Z Record version: sha256:157c2825f5c6d5f923c78861d1c221ffe11d30bc96cd0eeef32c1ff6a33a607e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An [advance royalty](https://asc.understandingaccounting.org/glossary/a/#advance-royalty "An amount paid to music publishers, record producers, songwriters, or other artists in advance of their earning royalties from record or music sales. Such an amount is based on contractual terms and is generally nonrefundable.") paid to an artist shall be reported as an asset if the past performance and current popularity of the artist to whom the advance is made provide a sound basis for estimating that the amount of the advance will be recoverable from future [royalties](https://asc.understandingaccounting.org/glossary/r/#royalties "Amounts paid to record producers, songwriters, or other artists for their participation in making records and to music publishers for their copyright interest in music. Amounts for artists are determined by the terms of personal service contracts negotiated between the artists and record entities and usually are determined based upon a percentage of sales activity and license fee income, adjusted for estimated sales returns. Royalties for publishing are based on the copyright or other applicable laws, but the requirements of the law may be modified by licenses issued by the publishers.") to be earned by the artist. ##### [340-928-25-2](https://asc.understandingaccounting.org/asc/340/928/#340-928-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:57:23.467Z to 2026-09-09T23:57:23.467Z Record version: sha256:cca25ddbad096830569fad04d5a614f81a39fe9ae94fcb2a64b5ce4c0b61d697 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of the [record master](https://asc.understandingaccounting.org/glossary/r/#record-master "The master tape resulting from the performance of the artist. It is used to produce molds for commercial record production and other tapes for use in making cartridges, cassettes, DVDs, and reel tapes. The costs of producing a record master include the cost of the musical talent (musicians, vocal background, and arrangements); the cost of the technical talent for engineering, directing, and mixing; costs for the use of the equipment to record and produce the master; and studio facility charges. Under the standard type of artist contract, the record company bears a portion of the cost and recovers a portion of the cost from the artist out of designated royalties earned. However, either party may bear all or most of the cost.") cost borne by the record company shall be reported as an asset if the past performance and current popularity of the artist provides a sound basis for estimating that the cost will be recovered from future sales. ##### [340-928-25-3](https://asc.understandingaccounting.org/asc/340/928/#340-928-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:57:23.467Z to 2026-09-09T23:57:23.467Z Record version: sha256:dfc18246e0313502e65612708cded2f8ae18e6941a3bd1e6bb1a42b007c1320b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of the record master cost recoverable from the artist's royalties shall be accounted for as an advance royalty, as discussed in this Subtopic and Subtopic 928-720. #### Licensee Accounting ##### [340-928-25-4](https://asc.understandingaccounting.org/asc/340/928/#340-928-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:57:23.467Z to 2026-09-09T23:57:23.467Z Record version: sha256:4ff162d0a461eb614a89219cc731220b7c20d06c27a12f0a60af3762591e0178 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If [minimum guarantees](https://asc.understandingaccounting.org/glossary/m/#minimum-guarantee "An amount paid in advance by a licensee to a licensor for the right to sell or distribute records or music.") are paid in advance by a licensee, such guarantees shall be reported as an asset by the licensee.