# ASC 360-922-35: Property, Plant, and Equipment — Entertainment—Cable Television — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/922/#35-subsequent-measurement) 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): 2026-09-10T00:08:28.839Z to 2026-09-10T00:08:28.839Z Record version: sha256:062967129b0bf00b40e6593b44d637eb3c461967e513ec40d1f6bc0f40c1179d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-922-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/360/922/#35-subsequent-measurement) SEC content: no #### Prematurity Period ##### [360-922-35-1](https://asc.understandingaccounting.org/asc/360/922/#360-922-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:28.839Z to 2026-09-10T00:08:28.839Z Record version: sha256:5d6016c7c8df5804d2235d65bfff34d967a640b0dc12b6dfbf8b7160da07cbcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For capitalizable costs identified for the portion of a cable television system that is in the prematurity period, separate projections for the portion shall be developed and the portion's capitalized costs shall be evaluated separately 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.") for recoverability (see paragraph [922-360-35-4](https://asc.understandingaccounting.org/asc/360/922/#360-922-35-4)). #### Depreciation Expense ##### [360-922-35-2](https://asc.understandingaccounting.org/asc/360/922/#360-922-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:28.839Z to 2026-09-10T00:08:28.839Z Record version: sha256:434de9779842d26d3b45ac536ff188ab47fb564e31da2839ab030cc0b59e7095 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the prematurity period, depreciation expense shall be determined by multiplying the monthly depreciation of total capitalized costs expected on completion of the prematurity period by the fraction described in the following paragraph, using the depreciation method that will be applied by the entity after the prematurity period. ##### [360-922-35-3](https://asc.understandingaccounting.org/asc/360/922/#360-922-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:28.839Z to 2026-09-10T00:08:28.839Z Record version: sha256:6ede563f993485d3aab26108f86c9ebbd03248a7ea7f283332357b0456da7457 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following fraction shall be determined each month of the prematurity period. The denominator of the fraction shall be the total number of subscribers expected at the end of the prematurity period. The numerator of the fraction shall be the greatest of the following: 1. a The average number of subscribers expected that month as estimated at the beginning of the prematurity period 2. b The average number of subscribers that would be attained using at least equal (that is, straight-line) monthly progress in adding new subscribers towards the estimate of subscribers at the end of the prematurity period 3. c The average number of actual subscribers. This fraction also is to be used to allocate programming costs and other system costs between current and future operations, as discussed in paragraph [922-350-25-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-1). #### Recoverability ##### [360-922-35-4](https://asc.understandingaccounting.org/asc/360/922/#360-922-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:28.839Z to 2026-09-10T00:08:28.839Z Record version: sha256:c87bf08c8304a66399c9e4294e526719a79346543f9fc6b2136c661e61fb2338 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Capitalized plant is subject to the provisions of Topic 360. Capitalization of costs shall not cease when the total cost reaches an amount that is not fully recoverable. Capitalization of costs shall continue, and the provision required to reduce capitalized costs to recoverable value shall be increased. #### Subscriber Installation Costs ##### [360-922-35-5](https://asc.understandingaccounting.org/asc/360/922/#360-922-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:28.839Z to 2026-09-10T00:08:28.839Z Record version: sha256:a867eeed1c78d49442303396ac3069f2183df8bb013b62700f1d459d920c2556 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Initial subscriber installation costs capitalized under paragraph [922-360-25-7](https://asc.understandingaccounting.org/asc/360/922/#360-922-25-7) shall be depreciated over a period no longer than the depreciation period used for cable television plant.