# ASC 350-922-25: Intangibles—Goodwill and Other — Entertainment—Cable Television — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/922/#25-recognition) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:04:30.728Z to 2026-09-10T00:04:30.728Z Record version: sha256:e45d65c9c69f92d9b1540555cd7d1c644872cbed6c8b2f26e3dabce5877e0dfb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-922-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/922/#25-recognition) SEC content: no #### Prematurity Period—Programming and Other System Costs ##### [350-922-25-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:30.728Z to 2026-09-10T00:04:30.728Z Record version: sha256:1105f983c6d38ad7781a2451ad56f481834535fdf8ac668df8dec5d13caa9d27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the [prematurity period](https://asc.understandingaccounting.org/glossary/p/#prematurity-period "During the prematurity period, the cable television system is partially under construction and partially in service. The prematurity period begins when revenue from the first subscriber is recognized in accordance with Topic 606 on revenue from contracts with customers.Its end will vary with circumstances of the system but will be determined based on plans for completion of the first major construction period or achievement of a specified predetermined subscriber level at which no additional investment will be required for other than cable television plant. The construction period of a cable television system varies with the size of the franchise area, density of population, and difficulty of physical construction. The construction period is not completed until the head-end, main cable, and distribution cables are installed, and includes a reasonable time to provide for installation of subscriber drops and related hardware. During the construction period, many system operators complete installation of drops and begin to provide service to some subscribers in some parts of the system while construction continues. Providing the signal for the first time is referred to as energizing the system. The length of the prematurity period varies with the franchise development and construction plans. Such plans may consist of any of the following: Small franchise that is characterized by the absence of free television signal and a short construction period. The entire system is energized at one time near the end of the construction period. Medium-size franchise that is characterized by some direct competition from free television and by a more extensive geographical franchise area lending itself to incremental construction. Some parts of the system are energized as construction progresses. Large metropolitan franchise that is characterized by heavy direct competition from free television and fringe area signal inadequacy, high cost, and difficult construction. Many parts of the system are energized as construction progresses. Except in the smallest systems, programming is usually delivered to portions of the system and some revenues are obtained before construction of the entire system is complete. Thus, virtually every cable television system experiences a prematurity period during which it is receiving some revenue while continuing to incur substantial costs related to the establishment of the total system."), programming costs and other system costs that are incurred in anticipation of servicing a fully operating system and that will not vary significantly regardless of the number of subscribers shall be allocated between current and future operations. The proportion attributable to current operations shall be expensed currently and the remainder shall be capitalized. The amount to be expensed currently shall be determined by multiplying the total of such costs for the month by the fraction determined for that month as described in paragraph [922-360-35-3](https://asc.understandingaccounting.org/asc/360/922/#360-922-35-3). Those costs include property taxes based on valuation as a fully operating system; pole, underground duct, antenna site, and microwave rental based on rental costs for a fully operating system; and local origination programming to satisfy franchise requirements. ##### [350-922-25-2](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:30.728Z to 2026-09-10T00:04:30.728Z Record version: sha256:bcd427aea0b391016af2874a9328ceaaec19095324f9704ce2e5d84e0c7c16b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Refer to paragraph [922-835-25-1](https://asc.understandingaccounting.org/asc/835/922/#835-922-25-1) concerning the capitalization of interest costs during the prematurity period. #### Franchise Application Costs ##### [350-922-25-3](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:30.728Z to 2026-09-10T00:04:30.728Z Record version: sha256:a17e541b504b3a1a66bf7744e3ca9bd9d40e905394796c2e79d9b2ec2d4d1880 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of successful franchise applications shall be capitalized.