# ASC 360-922: Property, Plant, and Equipment — Entertainment—Cable Television Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/922/) 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): 2026-09-10T00:08:15.419Z to 2026-09-10T00:08:28.839Z Record version: sha256:29ec49710015a4e9f38cb00935cfdaea0f437ec6c40e67c5c2222b5b384ac193 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-922: Property, Plant, and Equipment — Entertainment—Cable Television ### Machine-generated study aids ```json { "summary": "This subtopic governs how cable television entities account for plant and installation costs during the \"prematurity period\" — the span between the start of construction/marketing and the point at which the system is substantially complete and serving subscribers. Management must fix the prematurity period before revenue from the first subscriber is recognized (presumed not to exceed two years), capitalize cable plant costs and initial subscriber installation costs in full during that period, and record depreciation using a subscriber-based fraction rather than full depreciation. Distinguishable portions of a system in the prematurity period are accounted for and tested for recoverability separately.", "key_points": [ "Management must establish the beginning and end of the prematurity period before revenue is recognized from the first subscriber, presumed not to exceed two years (longer only in major urban markets), and it cannot be changed except for highly unusual circumstances (360-922-25-1).", "A clearly distinguishable portion of a system in the prematurity period is accounted for separately, using characteristics such as geographic, mechanical (separate head-end), timing, investment-decision, and accounting-records differences (360-922-25-1; 360-922-25-3).", "Costs of the remainder of the system are charged to a portion in the prematurity period only if specifically identified with that portion's operations (360-922-25-4).", "During the prematurity period, cable television plant costs — materials, direct labor, and construction overhead — continue to be capitalized in full, and initial subscriber installation costs (material, labor, and overhead of the drop) are capitalized (360-922-25-5; 360-922-25-7).", "Depreciation during the prematurity period equals monthly depreciation of total capitalized costs expected at completion multiplied by a fraction whose denominator is total subscribers expected at the end of the period and whose numerator is the greatest of expected average subscribers for the month, straight-line progress subscribers, or actual average subscribers (360-922-35-2; 360-922-35-3).", "That same fraction allocates programming and other system costs between current and future operations (360-922-35-3; see 922-350-25-1).", "Capitalization does not stop when total cost exceeds recoverable amount; capitalization continues and the provision reducing capitalized costs to recoverable value is increased (360-922-35-4), and capitalized initial installation costs are depreciated over no longer than the plant depreciation period (360-922-35-5)." ], "categories": [ "Inventory and PP&E", "Initial measurement", "Subsequent measurement", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The signature rule here is the subscriber-based depreciation fraction — students often assume full depreciation begins once the plant is placed in service, but during the prematurity period only a proportional amount is recorded. Also note the counterintuitive rule in 360-922-35-4: unrecoverable costs are still capitalized, with the shortfall handled through an increased valuation provision rather than by halting capitalization.", "related_topics": [ "922-10", "922-350", "922-360", "922-835", "360-10", "280" ], "key_concepts": [ "prematurity period", "cable television plant", "initial subscriber installation costs", "subscriber fraction depreciation", "portion of a cable system", "recoverability provision", "construction overhead capitalization", "cost allocation between current and future operations" ] } ``` Source downloaded (UTC): 2026-09-10T00:08:15.419Z to 2026-09-10T00:08:15.419Z Record version: sha256:02b52313151dd4df23eaa57dd9e72b98fc7e5045f286f7bca2b75e0a3f362990 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-922-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/360/922/#00-status) SEC content: no ##### [360-922-00-1](https://asc.understandingaccounting.org/asc/360/922/#360-922-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:15.419Z to 2026-09-10T00:08:15.419Z Record version: sha256:8d6328c2a226ec15f8b33902ba0c2b99846199bfed192f7cc8f99e647fb41f80 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
922-360-25-1AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T00:08:17.898Z to 2026-09-10T00:08:17.898Z Record version: sha256:4056de47383f37bbb9ca711fc60b6fcecc61702e2b11aa0a3cd116125ce1b1f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-922-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/360/922/#05-overview-and-background) SEC content: no ##### [360-922-05-1](https://asc.understandingaccounting.org/asc/360/922/#360-922-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:17.898Z to 2026-09-10T00:08:17.898Z Record version: sha256:7c9b7dcff6066bb98ef12802533664e75f22bef092390fa7a69af76c504743c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for certain costs incurred by entities in the cable television industry during the periods of cable construction and service. Source downloaded (UTC): 2026-09-10T00:08:20.520Z to 2026-09-10T00:08:20.520Z Record version: sha256:dd07226ab2daf438deb4f4dc344ad2885d87c4aae945f62046e755507f75358d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-922-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/360/922/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [360-922-15-1](https://asc.understandingaccounting.org/asc/360/922/#360-922-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:20.520Z to 2026-09-10T00:08:20.520Z Record version: sha256:fb1432154e917090ba6184bb1c76911e8b56c8408a2a78382dab03d7dbdc3e43 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 922-10-15. 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. 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.