# ASC 360-922-25: Property, Plant, and Equipment — Entertainment—Cable Television — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/922/#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): 2026-09-10T00:08:26.653Z to 2026-09-10T00:08:26.653Z Record version: sha256:c6a666a6d88bad26ee155cd911e9022b8a7f924cd0f670b59d0d1bf3f9278b7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-922-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/360/922/#25-recognition) SEC content: no #### Prematurity Period—Certain Capitalizable Costs ##### [360-922-25-1](https://asc.understandingaccounting.org/asc/360/922/#360-922-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:26.653Z to 2026-09-10T00:08:26.653Z Record version: sha256:572592600bd766bd3d26699aa8596872cd75320cc27113c6c8b1a6c4290c3ad8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Before revenue is recognized from the first subscriber, management shall establish the beginning and end of 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."), subject to a presumption that the prematurity period usually will not exceed two years. The prematurity period frequently will be shorter than two years; a longer period may be reasonably justified only in major urban markets. After the prematurity period is established by management, it shall not be changed except as a result of highly unusual circumstances. A portion of a cable television system that is in the prematurity period and can be clearly distinguished from the remainder of the system shall be accounted for separately. ##### [360-922-25-2](https://asc.understandingaccounting.org/asc/360/922/#360-922-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:26.653Z to 2026-09-10T00:08:26.653Z Record version: sha256:b608dcccb46652c6752b84e7c4a2f90b12070aa1724fd5ec5254d7beb868d827 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. (Some cable television entities have used the word segment to refer to a portion of a cable television system. In view of the use of segment in a different context in Topic 280, the word portion is used throughout the Entertainment—Cable Television Topic.) ##### [360-922-25-3](https://asc.understandingaccounting.org/asc/360/922/#360-922-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:26.653Z to 2026-09-10T00:08:26.653Z Record version: sha256:4aa4bb1120dceea9bcfbdcf513613d09bbe0a53ee42fa4c7540e8ac5bd80acea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Such a portion would have most of the following characteristics: 1. a Geographical differences, such as coverage of a noncontiguous or separately awarded franchise area 2. b Mechanical differences, such as a separate head-end 3. c Timing differences, such as starting construction or marketing at a significantly later date 4. d Investment decision differences, such as separate break-even and return-on-investment analyses or separate approval of start of construction 5. e Separate accounting records, separate budgets and forecasts, or other accountability differences. ##### [360-922-25-4](https://asc.understandingaccounting.org/asc/360/922/#360-922-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:26.653Z to 2026-09-10T00:08:26.653Z Record version: sha256:e1b8611bbd3fd27cddb3c9e033ad54f04f0fe673ef98c8768b891cb2c79f87cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs incurred by the remainder of the system shall be charged to the portion in the prematurity period only if they are specifically identified with the operations of that portion. ##### [360-922-25-5](https://asc.understandingaccounting.org/asc/360/922/#360-922-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:26.653Z to 2026-09-10T00:08:26.653Z Record version: sha256:e8f1f6259114750b5b2929a0e8dae020cdedbe6dce6dc9c3c7653d087bd61efc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the prematurity period, costs of cable television plant, including materials, direct labor, and construction overhead shall continue to be capitalized in full. ##### [360-922-25-6](https://asc.understandingaccounting.org/asc/360/922/#360-922-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:26.653Z to 2026-09-10T00:08:26.653Z Record version: sha256:8fd28a972fa56db491617c60c8401e7be1dc8cd1c3af770e8ffe0da5a142b46e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See 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. #### Subscriber Installation Costs ##### [360-922-25-7](https://asc.understandingaccounting.org/asc/360/922/#360-922-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:26.653Z to 2026-09-10T00:08:26.653Z Record version: sha256:3229801046347d75aaaf202d810d7b222ea558f73b078742b1ebe73cd0ff1acc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Initial subscriber installation costs, including material, labor, and overhead costs of the drop, shall be capitalized.