# ASC 350-920: Intangibles—Goodwill and Other — Entertainment—Broadcasters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/920/) 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): 2026-09-10T00:03:46.608Z to 2026-09-10T00:04:16.226Z Record version: sha256:97c143bb5100866863edb817ec8a48cb8c6d982d525443350466a39142560481 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920: Intangibles—Goodwill and Other — Entertainment—Broadcasters ### Machine-generated study aids ```json { "summary": "This Subtopic tells a broadcaster (licensee) how to account for rights acquired under a license agreement for program material: when to recognize the asset and related liability, at what amounts to record them, and how to amortize and test them for impairment. The core rule is that the license is treated as a purchase of a right or group of rights, recognized when the license period begins and three cost/acceptance/availability conditions are met, then amortized based on estimated future showings and carried at the lower of unamortized cost or fair value. It also governs accounting for terminated network affiliation agreements.", "key_points": [ "A broadcaster shall account for a program license agreement and any exhibition rights acquired as a purchase of a right or group of rights (350-920-25-1).", "An asset and liability are reported when the license period begins and all three conditions are met: cost of each program is known or reasonably determinable, the material has been accepted by the licensee, and the program is available for its first showing or telecast (350-920-25-2).", "Capitalized cost is measured under one of the methods in 920-405-30-1 and allocated to individual programs in a package based on relative value to the broadcaster; the asset is reported at the lower of unamortized cost or fair value on a program-by-program, series, package, or daypart basis (350-920-30-1 through 30-3).", "Amortization is based on the estimated number of future showings, except licenses for unlimited showings of cartoons and similar programs, which may be amortized over the agreement period; feature programs are amortized program-by-program and series as a series, with an accelerated method if the first showing is more valuable (350-920-35-1 through 35-2).", "A license agreement that is part of a film group is tested for impairment under 926-20-35-12 and 926-20-35-12B; otherwise under 920-350-35-3, and a writeoff from unamortized cost to fair value establishes a new cost basis (350-920-35-2A, 35-3).", "On termination of a network affiliation agreement not immediately replaced, the unamortized balance is charged to expense; if immediately replaced, a loss is recognized only to the extent unamortized cost exceeds the fair value of the new affiliation, and no gain is recognized (350-920-40-1).", "Required disclosures include amortization and impairment methods and units of account, aggregate amortization expense and its income statement caption, and the portion of capitalized license costs expected to be amortized in each of the next three operating cycles (350-920-50-1 through 50-4)." ], "categories": [ "Recognition", "Subsequent measurement", "Impairment", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Watch the recognition trigger: the licensee capitalizes the full asset and liability when the license period begins and the program is available for its first telecast — not as installment payments are made — and the fee is owed whether or not the rights are ever exercised. A common misunderstanding is treating these agreements as executory contracts or leases rather than as a purchase of rights.", "related_topics": [ "920-350", "920-405", "926-20", "920-10", "280", "220-40" ], "key_concepts": [ "program license agreement", "broadcaster licensee", "capitalized program rights", "estimated number of future showings", "lower of unamortized cost or fair value", "network affiliation agreement", "film group impairment", "daypart" ] } ``` Source downloaded (UTC): 2026-09-10T00:03:46.608Z to 2026-09-10T00:03:46.608Z Record version: sha256:c095fa018f18422fc5d60ce323e2686cea00b9ec1e261a8988248661b185c631 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/920/#00-status) SEC content: no ##### [350-920-00-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:46.608Z to 2026-09-10T00:03:46.608Z Record version: sha256:a71b42c1df4e929765ebe6effe6f692071fe8dcbd6c0ab895749ab3366b6c99f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
FilmsAddedAccounting Standards Update No. 2019-0203/06/2019
Film GroupAddedAccounting Standards Update No. 2019-0203/06/2019
920-350-30-3AmendedAccounting Standards Update No. 2019-0203/06/2019
920-350-35-1AmendedAccounting Standards Update No. 2019-0203/06/2019
920-350-35-2AAddedAccounting Standards Update No. 2019-0203/06/2019
920-350-35-3AmendedAccounting Standards Update No. 2019-0203/06/2019
920-350-45-1AmendedAccounting Standards Update No. 2019-0203/06/2019
920-350-50-1 through 50-4
AddedAccounting Standards Update No. 2019-0203/06/2019
920-350-50-2AmendedAccounting Standards Update No. 2024-0311/04/2024
920-350-50-4AmendedAccounting Standards Update No. 2024-0311/04/2024
Source downloaded (UTC): 2026-09-10T00:03:49.256Z to 2026-09-10T00:03:49.256Z Record version: sha256:ea7b23aa0f8f85596d181bd2284ff80be7cdad617b9766dde39d59164339ad6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/920/#05-overview-and-background) SEC content: no ##### [350-920-05-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:49.256Z to 2026-09-10T00:03:49.256Z Record version: sha256:0173ee5a5c54427daac9c0898edc727b43c680dba1f2f1308124cc77ef818b19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting and reporting by a [broadcaster](https://asc.understandingaccounting.org/glossary/b/#broadcaster "An entity or an affiliated group of entities that transmits radio or television program material.") licensee for the rights acquired under 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 program material. Guidance is provided on: 1. a When to recognize the asset acquired under such license agreements in the financial statements 2. b At what amounts to record the asset 3. c Amortization of the capitalized amounts recorded. Guidance also is provided in this Subtopic on the accounting for [network affiliation agreements](https://asc.understandingaccounting.org/glossary/n/#network-affiliation-agreement "A broadcaster may be affiliated with a network under a network affiliation agreement. Under the agreement, the station receives compensation for the network programming that it carries based on a formula designed to compensate the station for advertising sold on a network basis and included in network programming. Program costs, a major expense of television stations, are generally lower for a network affiliate than for an independent station because an affiliate does not incur program costs for network programs.") that are terminated. ##### [350-920-05-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:49.256Z to 2026-09-10T00:03:49.256Z Record version: sha256:ec346516ca9320d02fef20769881d283098716807f9a745e7b3797bf8debb1aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [920-350-25-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-25-2) for guidance on recording the obligation incurred by a broadcaster licensee under a program license agreement. ##### [350-920-05-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:49.256Z to 2026-09-10T00:03:49.256Z Record version: sha256:aa43ab8beec6f19bcf3dd7b1c2dc9242ecb37877a7c9358a4eecb1b3370d6b89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A typical license agreement for program material grants a licensee the right to broadcast a specified number or an unlimited number of showings during the license period for a fee. Ordinarily, the fee is paid in installments over a period generally shorter than the license period. The agreement usually contains a separate license for each program in the package. The license expires at the earlier of the last allowed telecast or the end of the license period. The licensee pays the required fee whether or not the rights are exercised. If the licensee does not exercise the contractual rights, the rights revert to the licensor with no refund to the licensee. The license period is not intended to provide continued use of the program material throughout that period but rather to define a reasonable period of time within which the licensee can exercise the limited rights to use the program material. Source downloaded (UTC): 2026-09-10T00:03:51.767Z to 2026-09-10T00:03:51.767Z Record version: sha256:3ff2d13b5b4d034f2d044f9031ace6a72980bf6916f8a5309c6904733006df4f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/920/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-920-15-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:51.767Z to 2026-09-10T00:03:51.767Z Record version: sha256:64b8405e3c1c02bf956ef91d0d825f6d6c228bc7197d35c4ed9cf3e2528577e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 920-10-15. Source downloaded (UTC): 2026-09-10T00:03:57.244Z to 2026-09-10T00:03:57.244Z Record version: sha256:7abe88e883d3bb724e02af4ccafe0100bce06ec32c9ebb21a5e8d21e1b228592 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/920/#25-recognition) SEC content: no #### License Agreements for Program Material—Exhibition Rights ##### [350-920-25-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:57.244Z to 2026-09-10T00:03:57.244Z Record version: sha256:18d40530cce5af58c45b3893f4c1f8a17fa1cdac5f92d7907a29153b46421fba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [broadcaster](https://asc.understandingaccounting.org/glossary/b/#broadcaster "An entity or an affiliated group of entities that transmits radio or television program material.") (licensee) shall account 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 program material and any exhibition right(s) acquired under a license agreement for program material as a purchase of a right or group of rights. ##### [350-920-25-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:57.244Z to 2026-09-10T00:03:57.244Z Record version: sha256:d5e6c752546e9de2a001104611aaf8f584cc7180c5030cbfd8ae07521becde01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A licensee shall report an asset and a liability for the rights acquired and obligations incurred under a license agreement when the license period begins and all of the following conditions have been met: 1. a The cost of each program is known or reasonably determinable. 2. b The program material has been accepted by the licensee in accordance with the conditions of the license agreement. 3. c The program is available for its first showing or telecast. Except when a conflicting license prevents usage by the licensee, restrictions under the same license agreement or another license agreement with the same licensor on the timing of subsequent showings shall not affect this availability condition. Source downloaded (UTC): 2026-09-10T00:03:59.422Z to 2026-09-10T00:03:59.422Z Record version: sha256:11c5617c7baf62ece5ae05054326a978a8e4715df94d6debeff36f7f587f1cee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/350/920/#30-initial-measurement) SEC content: no #### License Agreements for Program Material ##### [350-920-30-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:59.422Z to 2026-09-10T00:03:59.422Z Record version: sha256:8c49fbb590d2ecdd905b73da2a8b9d89437061a9b0c713bc54aa4daf07c4c062 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [920-405-30-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-30-1) presents the alternative methods under which a [broadcaster](https://asc.understandingaccounting.org/glossary/b/#broadcaster "An entity or an affiliated group of entities that transmits radio or television program material.") shall report the amount of the asset and liability for a broadcast [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."). ##### [350-920-30-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:59.422Z to 2026-09-10T00:03:59.422Z Record version: sha256:daea43fe51106a3f9cef0f6d99589b3d8046082a61b5a0c52e29f986194db62c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The capitalized costs to be amortized shall be determined under one of the methods specified in paragraph [920-405-30-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-30-1). Those costs shall be allocated to individual programs within a package on the basis of the relative value of each to the broadcaster, which ordinarily would be specified in the contract. ##### [350-920-30-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:59.422Z to 2026-09-10T00:03:59.422Z Record version: sha256:98c9506c17edd3cb735d14bcdfec287fd12782f50a5c9f90a816320875105cd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The capitalized costs of rights to program materials shall be reported in the balance sheet at the lower of unamortized cost or fair value on a program-by-program, series, package, or [daypart](https://asc.understandingaccounting.org/glossary/d/#daypart "An aggregation of programs broadcast during a particular time of day (for example, daytime, evening, late night) or programs of a similar type (for example, sports, news, children's shows). Broadcasters generally sell access to viewing audiences to advertisers on a daypart basis.") basis, as appropriate. Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:957929ed1f088e5aba572115f9e2cb49af063eadaf0c85c7daa8fa5fd4c32d0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/920/#35-subsequent-measurement) SEC content: no #### License Agreements for Program Material—Amortization ##### [350-920-35-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:f88a380cc73c886578c1d1782e053ad87f26b84cba398e4474d3c8218343de05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The capitalized costs of [license agreements](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 program material, including license agreements in a [film group](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements."), shall be amortized based on the estimated number of future showings, except that licenses providing for unlimited showings of cartoons and programs with similar characteristics may be amortized over the period of the agreement because the estimated number of future showings may not be determinable. ##### [350-920-35-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:8152fef5ff5ce8c6017c7de3d74fbe7b99e782473a1f5bd23411c8a6af906cff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Feature programs shall be amortized on a program-by-program basis; however, amortization as a package may be appropriate if it approximates the amortization that would have been provided on a program-by-program basis. Program series and other syndicated products shall be amortized as a series. If the first showing is more valuable to a station than reruns, an accelerated method of amortization shall be used. However, the straight-line amortization method may be used if each showing is expected to generate similar revenues. #### License Agreements for Program Material—Valuation ##### [350-920-35-2A](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:0aa9db26403c8a7609a78effb34a21886e3889afe0e76cb7ce37f6d04a6f8cb7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a license agreement within the scope of this Subtopic is part of a film group (see paragraphs [926-20-35-3B through 35-3C](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-3B) ), it shall be reviewed for impairment in accordance with paragraphs [926-20-35-12](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-12) and [926-20-35-12B](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-12B). If the license agreement is not part of a film group, it shall be reviewed for impairment in accordance with paragraph [920-350-35-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-3). ##### [350-920-35-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:8f64d15b27f5124c88d6ad61eb86acdf3356ef0a62b94eb1765665f1b658d32b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If management's expectations of the programming usefulness of a program, series, package, or [daypart](https://asc.understandingaccounting.org/glossary/d/#daypart "An aggregation of programs broadcast during a particular time of day (for example, daytime, evening, late night) or programs of a similar type (for example, sports, news, children's shows). Broadcasters generally sell access to viewing audiences to advertisers on a daypart basis.") are revised downward, it may be necessary to write off to the income statement the amount by which the unamortized capitalized costs exceed fair value. A writeoff from unamortized cost to fair value establishes a new cost basis. Source downloaded (UTC): 2026-09-10T00:04:02.946Z to 2026-09-10T00:04:02.946Z Record version: sha256:8db74d1df7d09540eed3df618176453c25de91f3b0f77e4acacbe5ecbce14b1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/350/920/#40-derecognition) SEC content: no #### Termination of a Network Affiliation Agreement ##### [350-920-40-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:02.946Z to 2026-09-10T00:04:02.946Z Record version: sha256:e1870ded26276e23132986f840c94eae51f2c83b45d968830222761e9e2d3201 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [network affiliation agreement](https://asc.understandingaccounting.org/glossary/n/#network-affiliation-agreement "A broadcaster may be affiliated with a network under a network affiliation agreement. Under the agreement, the station receives compensation for the network programming that it carries based on a formula designed to compensate the station for advertising sold on a network basis and included in network programming. Program costs, a major expense of television stations, are generally lower for a network affiliate than for an independent station because an affiliate does not incur program costs for network programs.") is terminated and not immediately replaced or under agreement to be replaced, the unamortized balance of the amount originally allocated to the network affiliation agreement shall be charged to expense. If a network affiliation is terminated and immediately replaced or under agreement to be replaced, a loss shall be recognized to the extent that the unamortized cost of the terminated affiliation exceeds the fair value of the new affiliation. Gain shall not be recognized if the fair value of the new network affiliation exceeds the unamortized cost of the terminated affiliation. Source downloaded (UTC): 2026-09-10T00:04:04.809Z to 2026-09-10T00:04:04.809Z Record version: sha256:254ed49ad89b1040733569df530a50297f76b66669df159d04d4b4f6f4fe900c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/350/920/#45-other-presentation-matters) SEC content: no #### License Agreements for Program Material ##### [350-920-45-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:04.809Z to 2026-09-10T00:04:04.809Z Record version: sha256:57e5b7c0bbc69cdaabe23f2f8f58bb69fad3900425522523fcf6879e9ee6d335 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The asset recorded for the rights acquired under 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 program material shall be presented separately from [films](https://asc.understandingaccounting.org/glossary/f/#films "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.") that are accounted for under Subtopic 926-20 either on the balance sheet or in the notes to financial statements. #### Network Affiliation Agreements ##### [350-920-45-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:04.809Z to 2026-09-10T00:04:04.809Z Record version: sha256:34511767cdd5ddcab41cd40b2bca37677fea153beae3b4169142f493cc44b6bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Network affiliation agreements](https://asc.understandingaccounting.org/glossary/n/#network-affiliation-agreement "A broadcaster may be affiliated with a network under a network affiliation agreement. Under the agreement, the station receives compensation for the network programming that it carries based on a formula designed to compensate the station for advertising sold on a network basis and included in network programming. Program costs, a major expense of television stations, are generally lower for a network affiliate than for an independent station because an affiliate does not incur program costs for network programs.") and other such items ordinarily are presented in the balance sheet of a [broadcaster](https://asc.understandingaccounting.org/glossary/b/#broadcaster "An entity or an affiliated group of entities that transmits radio or television program material.") as intangible assets. Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:4113084b1ec6c8dcaba0840be97e96545cc1bc601db32e41f08ae292f05e549b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/350/920/#50-disclosure) SEC content: no #### License Agreements for Program Material ##### [350-920-50-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:3c1c3ead1a29a0cd2d4574c2235e83facf922f20da3ae29626912baf0b8726f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose its methods of accounting for the rights acquired under 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."), including, but not limited to, the following methods: 1. a The method or method(s) used in computing amortization 2. b For impairment, a description of the unit(s) of account used for impairment testing and the method(s) used for determining fair value. ##### [350-920-50-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:44e1a040f6dd1ef85f050284bdb0945289cdb7eb850c4262f2b7aa1052d99deb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following information shall be disclosed in the financial statements or the notes to financial statements for each period for which a statement of financial performance is presented: 1. a The aggregate amortization expense for the period 2. b The caption in the income statement where the amortization is recorded. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)The following information shall be disclosed in the financial statements or the notes to financial statements for each period for which a statement of financial performance is presented: 1. a The aggregate amortization expense for the period 2. b The caption in the income statement where the amortization is recorded. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ##### [350-920-50-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:96efc9ba2ef30f52380ce46db7816b8e8ef317ba36bd21a5887f4309118ab0ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the most recent annual period for which a statement of financial position is presented, an entity shall disclose in the notes to financial statements the portion of the costs of license agreements recognized at the date of the most recent statement of financial position that an entity expects to amortize within each of the next three operating cycles. An operating cycle is presumed to be 12 months. An entity shall disclose its operating cycle if it is other than 12 months. ##### [350-920-50-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:d2a27af51927aff0f1f231f2d07b0e93dcb70bbbc105008cc8e448749bd17f4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For impairment amounts recognized for a license agreement that is not included in a [film group](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements."), the following information shall be disclosed in the notes to financial statements that include the period in which the impairment losses are recognized: 1. a A description of the facts and circumstances leading to the impairment 2. b The amount of impairment losses 3. c The caption in the income statement where the impairment losses are recorded 4. d If applicable, the segment(s) under Topic 280 where the impairment losses are recorded. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For impairment amounts recognized for a license agreement that is not included in a [film group](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements."), the following information shall be disclosed in the notes to financial statements that include the period in which the impairment losses are recognized: 1. a A description of the facts and circumstances leading to the impairment 2. b The amount of impairment losses 3. c The caption in the income statement where the impairment losses are recorded 4. d If applicable, the segment(s) under Topic 280 where the impairment losses are recorded. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. 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%"