# ASC 350-920-55: Intangibles—Goodwill and Other — Entertainment—Broadcasters — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/920/#55-implementation-guidance-and-illustrations) 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): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:9df24a0d6d8db5414ea7c44f0791fdc6793a8a39d37daa43e32c3ace4e3ed7d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/350/920/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [350-920-55-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:08c9dcc11b36e7f9655e893d9dc95ad8f954d6415f28ed7e7db152044acb7529 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates accounting for a [license agreement](https://asc.understandingaccounting.org/glossary/l/#license-agreement "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.") for television program material in accordance with this Topic. ##### [350-920-55-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:361679447a773628a49012fd8cf722294fec609142c0b589eb74940d9490e5eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example has the following assumptions: 1. a End of Fiscal Year—December 31 2. b Contract Execution Date—July 31, 19X1 3. c Number of Films and Telecasts Permitted—four films, two telecasts each 4. d Payment Schedule—$1,000,000 at contract execution date, $6,000,000 on January 1, 19X2, 19X3, and 19X4 5. e Appropriate Interest Rate for Imputation of Interest—12 percent per year 6. f Fees, License Periods, and Film Availability Dates. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-87B209DB-505D-488B-AE32-983BE4C6BAD9-low.gif) Stated License Periods Film Availability Dates Film Total Fee From To(a) A "$8,000,000" 10/1/X1 9/30/X3 9/1/X1 B "5,000,000" 10/1/X1 9/30/X3 9/1/X1 C "3,750,000" 9/1/X2 8/31/X4 12/1/X1 D "2,250,000" 9/1/X3 8/31/X5 12/1/X2 "$19,000,000" (a) The actual license periods expire at the earlier of the second telecast or the end of the stated license period. 7. g Telecast Dates and Revenues. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-D225D6F6-2EEB-4606-9D29-A31869B4B6D8-low.gif) First Telecast Second Telecast Film Date Percent of Total Revenue Date Percent of Total Revenue A 3/1/X2 60% 6/1/X3 40% B 5/1/X2 70% 7/1/X3 30% C 6/1/X3 75% 6/1/X4 25% D 12/1/X4 65% 8/1/X5 35% ##### [350-920-55-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:8174164d846d980ef3bd032fc20dbcb51edaef8e39790ffc74fe8640f6e257da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of imputing interest, it is assumed that the $1,000,000 payment on July 31, 19X1 and the $6,000,000 payments on January 1, 19X2 and 19X3 relate to Films A and B and the $6,000,000 payment on January 1, 19X4 relates to Films C and D. Other simplifying assumptions or methods of assigning the payments to the films could be made. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-C07B901B-A559-4168-9CA1-E6E212276740-low.gif) Payment Discounted Present Value (rounded to 000s) Film Date Amount As of Date Amount A and B 7/31/X1 " $1,000,000 " 10/1/X1 " $1,000,000 " 1/1/X2 " 6,000,000 " 10/1/X1 " 5,825,000 " 1/1/X3 " 6,000,000 " 10/1/X1 " 5,201,000 " " $13,000,000 " " $12,026,000 " C 1/1/X4 " $3,750,000 " 9/1/X2 " $3,219,000 " D 1/1/X4 " $2,250,000 " 9/1/X3 " $2,163,000 " " $6,000,000 " ##### [350-920-55-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:5f2cf1aaa25157df4beec3b62b9eefee260eed500b456ba3f4243ce0c5e1deba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Asset and Liability Recognition (Fair Value Approach) - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-F69E33F8-04DF-4BA3-B3C8-622F610BB173-low.gif) License Period Year of Asset and Liability Recognition Film From To 19X1 19X2 19X3 A 10/1/X1 9/30/X3 " $7,401,000 " ( a) B 10/1/X1 9/30/X3 " 4,625,000 " ( a) C 9/1/X2 8/31/X4 " $3,219,000 " " $2,163,000 " D 9/1/X3 8/31/X5 (a) "Discounted present value of $12,026,000 allocated 8/13 to film A and 5/13 to film B based on stated license fees." ##### [350-920-55-5](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:8083482e436300a8429e8f993b49db77d34d43795a5f53b2ba124650c4c4d7ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Expense Recognition (Fair Value Approach) - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-586EB856-2BC8-4312-BCC5-7D56B63217C5-low.gif) Year of Expense Recognition Film 19X1 19X2 19X3 19X4 19X5 A " $204,000 " (I) (a) " $396,000 " (I) (b) " 4,441,000 " (A) (c) " $2,960,000 " (A) (d) B " 127,000 " (I) (e) " 247,000 " (I) (f) " 3,238,000 " (A) (g) " 1,387,000 " (A) (h) C " 129,000 " (I) (i) " 402,000 " (I) (j) " 2,414,000 " (A) (k) " $805,000 " (A) (l) D " 87,000 " (I) (m) " 1,406,000 " (A) (n) " $757,000 " (A) (o) " $331,000 " " $8,451,000 " " $7,250,000 " " $2,211,000 " " $757,000 " (I) Accrued interest expense (A) Amortization of program cost (a) "Interest at 12% for 3 months on liability of $11,026,000 allocated 8/13 to Film A" (b) "Interest at 12% for 1 year on liability of $5,357,000 ($11,026,000 plus $331,000 less 1/1/X2 payment of $6,000,000) allocated 8/13 to Film A" (c) "$7,401,000 × 60%" (d) "$7,401,000 × 40%" (e) "Interest at 12% for 3 months on liability of $11,026,000 allocated 5/13 to Film B" (f) "Interest at 12% for 1 year on liability of $5,357,000 ($11,026,000 plus $331,000 less 1/1/X2 payment of $6,000,000) allocated 5/13 to Film B" (g) "$4,625,000 × 70%" (h) "$4,625,000 × 30%" (i) "Interest at 12% for 4 months on liability of $3,219,000" (j) "Interest at 12% for 1 year on liability of $3,348,000 ($3,219,000 plus $129,000)" (k) "$3,219,000 × 75%" (l) "$3,219,000 × 25%" (m) "Interest at 12% for 4 months on liability of $2,163,000" (n) "$2,163,000 × 65%" (o) "$2,163,000 × 35%" ##### [350-920-55-6](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:c16fe6f675866a6fc21c07e14df265cd810537cb68bca966741936617f74bba1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Asset and Liability Recognition (Gross Approach) - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-56D5514B-070A-49E0-BE69-1ECC21562CB3-low.gif) License Period Year of Asset and Liability Recognition Film From To 19X1 19X2 19X3 A 10/1/X1 9/30/X3 " $8,000,000 " B 10/1/X1 9/30/X3 " 5,000,000 " C 9/1/X2 8/31/X4 " $3,750,000 " D 9/1/X3 8/31/X5 " $2,250,000 " ##### [350-920-55-7](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:77e8611bc95f73c391c6b500e0ebe2ea1e746caafb3c34ccdf891a9a281a35d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Expense Recognition (Gross Approach) - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-D74C25F8-1041-4C60-B2ED-C4B407FE4320-low.gif) Year of Expense Recognition (a) Film 19X1 19X2 19X3 19X4 19X5 A " $4,800,000 " (b) " $3,200,000 " (c) B " 3,500,000 " (d) " 1,500,000 " (e) C " 2,813,000 " (f) " $937,000 " (g) D " 1,463,000 " (h) " $787,000 " (i) $- " $8,300,000 " " $7,513,000 " " $2,400,000 " " $787,000 " (a) "Under the gross approach, all costs under a license agreement are recorded as amortization of program cost." (b) "$8,000,000 × 60%" (c) "$8,000,000 × 40%" (d) "$5,000,000 × 70%" (e) "$5,000,000 × 30%" (f) "$3,750,000 × 75%" (g) "$3,750,000 × 25%" (h) "$2,250,000 × 65%" (i) "$2,250,000 × 35%"