{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/340/928/","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":"340-928","topic":"340","title":"Entertainment—Music","area":"Assets","paragraphs":12,"summary":"ASC 340-928 governs when a music entity may capitalize advance royalties paid to artists, the cost of record masters, and minimum guarantees paid in advance by licensees. Capitalization hinges on recoverability: an advance royalty or the record company's share of record master cost is an asset only if the artist's past performance and current popularity provide a sound basis for estimating recovery from future royalties or sales. Capitalized amounts are charged to expense as royalties are earned or amortized over the recorded performance's life in relation to expected net revenue, with immediate write-off of nonrecoverable portions.","concepts":["advance royalties","record master costs","minimum guarantees","recoverability assessment","artist past performance and current popularity","amortization over estimated life","licensee capitalization","current and noncurrent classification"],"categories":["Recognition","Subsequent measurement","Impairment","Industry-specific"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-928-00-1","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=\"SL51654637-203243\"><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=\"/asc/340/928/#340-928-35-2\" class=\"xref\">928-340-35-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a></td><td class=\"entry\">05/28/2014</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n928-340-35-2 | Amended | Accounting Standards Update No. 2014-09 | 05/28/2014 |","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8445f9bc186eaa5cd2ed9f6c7f124cd75127949fb47478ff88a16a170afe2741","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:11.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478941","source_sha256":"fc42a6b253d57ab14004ba054d00fb26448272239a8de75a8afb84f05596558a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0811e3e176a31d326db763d12c77890ac86ada710431bcdc2c00f0edd948e81","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:11.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478941","source_sha256":"fc42a6b253d57ab14004ba054d00fb26448272239a8de75a8afb84f05596558a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2354352740e024d60e4c3984de9c9c55357657c223a307ce6a840c1ee5a85059","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:11.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478941","source_sha256":"fc42a6b253d57ab14004ba054d00fb26448272239a8de75a8afb84f05596558a"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-928-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">A <a href=\"/glossary/l/#license-agreements\" class=\"term\" title=\"Contractual arrangements entered into by an owner (licensor) of a record master or music copyright with a licensee granting the licensee the right to sell or distribute records or music for a fixed fee paid to the licensor or for a fee based on sales of records or music. License agreements are modifications of the compulsory provisions of the copyright law.\"><span>licensing agreement</span></a> may require <a href=\"/glossary/a/#advance-royalty\" class=\"term\" title=\"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.\"><span>advance royalties</span></a> to be paid to artists and <a href=\"/glossary/m/#minimum-guarantee\" class=\"term\" title=\"An amount paid in advance by a licensee to a licensor for the right to sell or distribute records or music.\"><span>minimum guarantees</span></a> to be advanced to licensors. This Subtopic addresses the accounting for such royalties and guarantees by an entity in the music industry. It also addresses the accounting by such entities for the costs to produce <a href=\"/glossary/r/#record-master\" class=\"term\" title=\"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.\"><span>record masters</span></a>.</div></div>","snippet":"A licensing agreement may require advance royalties to be paid to artists and minimum guarantees to be advanced to licensors. This Subtopic addresses the accounting for such royalties and guarantees by an entity in the m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:950341022bf38ce47e29b7ace2663d7752bf07c8abbeb891d7826883db1a4175","downloaded_from":"2026-09-09T23:57:14.741Z","last_downloaded_at":"2026-09-09T23:57:14.741Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479225","source_sha256":"291f4bd09a6a924b3b83ec7d4b69b9c5f0a018196e43e5c5f113566af74ac13d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:92b29ac6bd3f4c60e3d06fb9ddc784c6a8990d42290ae53821b4b5700f52d733","downloaded_from":"2026-09-09T23:57:14.741Z","last_downloaded_at":"2026-09-09T23:57:14.741Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479225","source_sha256":"291f4bd09a6a924b3b83ec7d4b69b9c5f0a018196e43e5c5f113566af74ac13d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d65e31babf6abd76a6fb4d0680394bbb1adcea5395c1bcaa7f23d6e617411a8","downloaded_from":"2026-09-09T23:57:14.741Z","last_downloaded_at":"2026-09-09T23:57:14.741Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479225","source_sha256":"291f4bd09a6a924b3b83ec7d4b69b9c5f0a018196e43e5c5f113566af74ac13d"}},{"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":"340-928-15-1","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-BB5D14AD-F23D-4D8C-A722-F487B8B7BABD.ditamap\" class=\"ditamap\">928-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 928-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87ee4d33e96cbf09e501dbd2cd7bfd6d65a66ed23718af2f80e97944fca9d557","downloaded_from":"2026-09-09T23:57:18.275Z","last_downloaded_at":"2026-09-09T23:57:18.275Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478817","source_sha256":"d912f99ea82061ea1c58ebec095ce270ff84a074cd4cfa11d77d59d7745ba45b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9dcec542f34c275a644f56dd2cc6eab9a6cfe8ba3cfc5fc4d62851a11008bdef","downloaded_from":"2026-09-09T23:57:18.275Z","last_downloaded_at":"2026-09-09T23:57:18.275Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478817","source_sha256":"d912f99ea82061ea1c58ebec095ce270ff84a074cd4cfa11d77d59d7745ba45b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c8fb02aae140bbbf3ba981a5c1196fc52c3182668f8a7c1081967ca24f1b68d","downloaded_from":"2026-09-09T23:57:18.275Z","last_downloaded_at":"2026-09-09T23:57:18.275Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478817","source_sha256":"d912f99ea82061ea1c58ebec095ce270ff84a074cd4cfa11d77d59d7745ba45b"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Licensor Accounting","paragraphs":[{"citation":"340-928-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E423F16C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An <a href=\"/glossary/a/#advance-royalty\" class=\"term\" title=\"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.\"><span>advance royalty</span></a> 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 <a href=\"/glossary/r/#royalties\" class=\"term\" title=\"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.\"><span>royalties</span></a> to be earned by the artist. </span></span></div></div>","snippet":"An advance royalty 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 adva…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:157c2825f5c6d5f923c78861d1c221ffe11d30bc96cd0eeef32c1ff6a33a607e","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}},{"citation":"340-928-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E423F314-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The portion of the <a href=\"/glossary/r/#record-master\" class=\"term\" title=\"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.\"><span>record master</span></a> 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. </span></span></div></div>","snippet":"The portion of the record master 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 rec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cca25ddbad096830569fad04d5a614f81a39fe9ae94fcb2a64b5ce4c0b61d697","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}},{"citation":"340-928-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E423F467-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <a altsource=\"GUID-EBE8B59B-DC9E-4A71-AD4C-917FBC273698.ditamap\" class=\"ditamap\">928-720</a>.</span></span></div></div>","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dfc18246e0313502e65612708cded2f8ae18e6941a3bd1e6bb1a42b007c1320b","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3dabb8787038a9e36ac75c79e81c8d6f7e9e3c9af1f52f1e786eee65690390b4","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}},{"block":null,"heading":"Licensee Accounting","paragraphs":[{"citation":"340-928-25-4","para":"25-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E423F5CE-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If <a href=\"/glossary/m/#minimum-guarantee\" class=\"term\" title=\"An amount paid in advance by a licensee to a licensor for the right to sell or distribute records or music.\"><span>minimum guarantees</span></a> are paid in advance by a licensee, such guarantees shall be reported as an asset by the licensee. </span></span></div></div>","snippet":"If minimum guarantees are paid in advance by a licensee, such guarantees shall be reported as an asset by the licensee.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ff162d0a461eb614a89219cc731220b7c20d06c27a12f0a60af3762591e0178","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb106148d3c92b18ff816566d0f49a49e2f4b735a05b4643c8684b26fb97f0a2","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:52993503deb88731eff03b8de5edf789c8adee91cc788fc156a0dd713fd4dd48","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Licensor Accounting","paragraphs":[{"citation":"340-928-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E4396E3B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">As indicated in paragraph <a href=\"/asc/720/928/#720-928-25-1\" class=\"xref\">928-720-25-1</a>, <a href=\"/glossary/a/#advance-royalty\" class=\"term\" title=\"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.\"><span>advance royalties</span></a> shall be charged to expense as subsequent <a href=\"/glossary/r/#royalties\" class=\"term\" title=\"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.\"><span>royalties</span></a> are earned by the artist. Any portion of such advances that subsequently appear not to be fully recoverable from future royalties to be earned by the artist shall be charged to expense during the period in which the loss becomes evident. </span></span></div></div>","snippet":"As indicated in paragraph 928-720-25-1, advance royalties shall be charged to expense as subsequent royalties are earned by the artist. Any portion of such advances that subsequently appear not to be fully recoverable fr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d8acd89f2fe95e2c76a962d4647d3815cb7b3db0c53b07669104c10dbc6e62e8","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}},{"citation":"340-928-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E439706B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The portion of the <a href=\"/glossary/r/#record-master\" class=\"term\" title=\"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.\"><span>record master</span></a> cost recognized as an asset shall be amortized over the estimated life of the recorded performance using a method that reasonably relates the amount to the net revenue expected to be recognized. </span></span></div></div>","snippet":"The portion of the record master cost recognized as an asset shall be amortized over the estimated life of the recorded performance using a method that reasonably relates the amount to the net revenue expected to be reco…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ccfef1572dfb581060f080ddf428e6ead39f8d2573192aca8d09a2b73c6967f5","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6c78581af22968a2c1ac9055858fbe2e9cde9c67e2bf6b04d324d9943f501bc","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}},{"block":null,"heading":"Licensee Accounting","paragraphs":[{"citation":"340-928-35-3","para":"35-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E43972BA-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><a href=\"/glossary/m/#minimum-guarantee\" class=\"term\" title=\"An amount paid in advance by a licensee to a licensor for the right to sell or distribute records or music.\"><span>Minimum guarantees</span></a> paid in advance, and reported as an asset by the licensee in accordance with paragraph <a href=\"/asc/340/928/#340-928-25-4\" class=\"xref\">928-340-25-4</a>,</span></span><span class=\"sfragment\" id=\"sfr_E4397414-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> shall subsequently be charged to expense in accordance with the terms of the <a href=\"/glossary/l/#license-agreements\" class=\"term\" title=\"Contractual arrangements entered into by an owner (licensor) of a record master or music copyright with a licensee granting the licensee the right to sell or distribute records or music for a fixed fee paid to the licensor or for a fee based on sales of records or music. License agreements are modifications of the compulsory provisions of the copyright law.\"><span>license agreement</span></a>. </span></span><span class=\"sfragment\" id=\"sfr_E439759A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> If all or a portion of the minimum guarantee subsequently appears not to be recoverable through future use of the rights obtained under the license, the nonrecoverable portion shall be charged to expense. </span></span></div></div>","snippet":"Minimum guarantees paid in advance, and reported as an asset by the licensee in accordance with paragraph 928-340-25-4, shall subsequently be charged to expense in accordance with the terms of the license agreement. If a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25373b2a686864b81fd3cb3b309103ab72e6aee75fc55cc531f7e5d722def390","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:479667fbaa4d20e785b1f03f2faa0f88874477bc984f7c10784d39fc73032c09","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dd14fe69cf65a870ac03f913a4c0e59aeb99b465a6543d772c1b76990e4e5863","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Licensor Accounting","paragraphs":[{"citation":"340-928-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E442A369-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><a href=\"/glossary/a/#advance-royalty\" class=\"term\" title=\"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.\"><span>Advance royalties</span></a> shall be classified as current and noncurrent assets, as appropriate. </span></span></div></div>","snippet":"Advance royalties shall be classified as current and noncurrent assets, as appropriate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75a30f676eb8cb18cad96825bc5d6ea31427dc8e626450dc373b81b72f439eae","downloaded_from":"2026-09-09T23:57:29.691Z","last_downloaded_at":"2026-09-09T23:57:29.691Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477426","source_sha256":"9be9c265cedb53ea1cc17396470cb71bcdce5ab4d7230fc796cd4862dcc640c5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb82bdf4d8f34c3a594f68127058c6f3f2cae093b5bbe9e88bc568467d26679b","downloaded_from":"2026-09-09T23:57:29.691Z","last_downloaded_at":"2026-09-09T23:57:29.691Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477426","source_sha256":"9be9c265cedb53ea1cc17396470cb71bcdce5ab4d7230fc796cd4862dcc640c5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09db430f4b973c70302caef5a84c725bf288050c6230c5e61decf8695f98165a","downloaded_from":"2026-09-09T23:57:29.691Z","last_downloaded_at":"2026-09-09T23:57:29.691Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477426","source_sha256":"9be9c265cedb53ea1cc17396470cb71bcdce5ab4d7230fc796cd4862dcc640c5"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Licensor Accounting","paragraphs":[{"citation":"340-928-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E44B1F32-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The portion of the <a href=\"/glossary/r/#record-master\" class=\"term\" title=\"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.\"><span>record master</span></a> cost borne by the record company that is recorded as assets shall be disclosed separately. </span></span></div></div>","snippet":"The portion of the record master cost borne by the record company that is recorded as assets shall be disclosed separately.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb62841eba3819971c4d361b35c1c0d8aae3fd5512aaae30d6febe54755a32f4","downloaded_from":"2026-09-09T23:57:32.291Z","last_downloaded_at":"2026-09-09T23:57:32.291Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478859","source_sha256":"84c343d2ec94828961da5cc0b4eaf6e44ab28e819d1fe9321f4748fdf6d32b5e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4c53b663de4b5e679ffa35757f8f9e973e4252cccfba93888719bd072ce96487","downloaded_from":"2026-09-09T23:57:32.291Z","last_downloaded_at":"2026-09-09T23:57:32.291Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478859","source_sha256":"84c343d2ec94828961da5cc0b4eaf6e44ab28e819d1fe9321f4748fdf6d32b5e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e71349ec09b2e532cea0932deb76aea6ac2fd92de95821f0dd262066f627f45","downloaded_from":"2026-09-09T23:57:32.291Z","last_downloaded_at":"2026-09-09T23:57:32.291Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478859","source_sha256":"84c343d2ec94828961da5cc0b4eaf6e44ab28e819d1fe9321f4748fdf6d32b5e"}}],"enrichment":{"summary":"ASC 340-928 governs when a music entity may capitalize advance royalties paid to artists, the cost of record masters, and minimum guarantees paid in advance by licensees. Capitalization hinges on recoverability: an advance royalty or the record company's share of record master cost is an asset only if the artist's past performance and current popularity provide a sound basis for estimating recovery from future royalties or sales. Capitalized amounts are charged to expense as royalties are earned or amortized over the recorded performance's life in relation to expected net revenue, with immediate write-off of nonrecoverable portions.","key_points":["An advance royalty paid to an artist is reported as an asset only if the artist's past performance and current popularity provide a sound basis for estimating recoverability from future royalties (340-928-25-1).","The portion of record master cost borne by the record company is an asset if that same past-performance/current-popularity test supports recovery from future sales (340-928-25-2); the portion recoverable from the artist's royalties is accounted for as an advance royalty (340-928-25-3).","Minimum guarantees paid in advance by a licensee are reported as an asset by the licensee (340-928-25-4).","Advance royalties are charged to expense as subsequent royalties are earned by the artist, and any portion that appears not to be fully recoverable is expensed in the period the loss becomes evident (340-928-35-1).","Capitalized record master cost is amortized over the estimated life of the recorded performance using a method that reasonably relates the amount to net revenue expected to be recognized (340-928-35-2).","Minimum guarantees are charged to expense in accordance with the license agreement terms, with any nonrecoverable portion expensed (340-928-35-3).","Advance royalties are classified as current and noncurrent assets as appropriate (340-928-45-1), and the capitalized record master cost borne by the record company is disclosed separately (340-928-50-1)."],"categories":["Recognition","Subsequent measurement","Impairment","Industry-specific"],"audience_level":"intermediate","student_note":"This is a classic industry-specific capitalization rule: the asset test is a judgmental recoverability standard tied to the artist's track record and current popularity, not a bright line. A common mistake is capitalizing the entire record master cost — only the portion borne by the record company is tested for capitalization; the portion recoverable from the artist's royalties is treated as an advance royalty.","related_topics":["928-720","928-10","928-405","340-10","926-340"],"key_concepts":["advance royalties","record master costs","minimum guarantees","recoverability assessment","artist past performance and current popularity","amortization over estimated life","licensee capitalization","current and noncurrent classification"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:71dd2e6b52f923713230e09d503a33240ed89385e7f2680dafe88096677a1a3a","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:36.379Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"720-928","title":"Entertainment—Music","topic_title":"Other Expenses","score":0.8742,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4d5def32224684e1141d485b90c555644073c8c91e12d39d4ee6b526d72332b","downloaded_from":"2026-09-10T01:10:22.861Z","last_downloaded_at":"2026-09-10T01:10:30.076Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"440-928","title":"Entertainment—Music","topic_title":"Commitments","score":0.774,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae548fcb1bc765f6bd5aa56d74e1d3a10c892ae60e6fd23f55bf7b0b081ea304","downloaded_from":"2026-09-10T00:25:52.692Z","last_downloaded_at":"2026-09-10T00:26:04.387Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"405-928","title":"Entertainment—Music","topic_title":"Liabilities","score":0.7463,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43b909c10cf15ce1a45fb563261521e749fc8a8364bd2f2567ca8abfabc592e6","downloaded_from":"2026-09-10T00:17:48.299Z","last_downloaded_at":"2026-09-10T00:17:59.597Z","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":0.682,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dfeca9337a951258774c52d58de5f5f2c7fbfb1b155d3259e5b0bf4ad468071b","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":"928-10","title":"Overall","topic_title":"Entertainment—Music","score":0.6788,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4f642cc0def4eab261949da320785a999cef7738e27682304bbd74a095fbd3e","downloaded_from":"2026-09-10T02:12:12.808Z","last_downloaded_at":"2026-09-10T02:12:18.919Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-10","title":"Overall","topic_title":"Other Assets and Deferred Costs","score":0.665,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:98fa8064c75578c45495ed60d11713a9a5451d4efa9dc6b8327c94968b420dbd","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-915","title":"Development Stage Entities","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf97457bec5ad10e2b786ff9439d235205371acf1ba3541cfaf74c833c3e4fb4","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-940","title":"Financial Services—Brokers and Dealers","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd814a134ac3238729d93cb7b047eb1a934fc62f1258987b425569444773a2fb","downloaded_from":"2026-09-09T23:57:38.994Z","last_downloaded_at":"2026-09-09T23:57:57.240Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not 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