# ASC 405-920: Liabilities — Entertainment—Broadcasters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/405/920/) 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): 2026-09-10T00:16:39.447Z to 2026-09-10T00:17:01.205Z Record version: sha256:8055befa6be1eb03d8eefd501299e5532e4db8d375dff936e38446c6c5e7e5c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 405-920: Liabilities — Entertainment—Broadcasters ### Machine-generated study aids ```json { "summary": "This Subtopic governs how broadcasters account for the liabilities they incur under license agreements for program material. A broadcaster recognizes both an asset (the program rights) and a liability when the license period begins and the conditions in 920-350-25-2 are met, measuring both at either the fair value or the gross amount of the liability, with any discount accreted as interest under Topic 835. The liability is then split between current and noncurrent on the balance sheet according to the payment terms.", "key_points": [ "A broadcaster recognizes an asset and a liability for rights acquired and obligations incurred under a program license agreement when the license period begins and the conditions of 920-350-25-2 are met (405-920-25-1).", "The licensee reports the asset and liability at either the fair value of the liability or the gross amount of the liability (405-920-30-1).", "If a present value technique is used to measure fair value, the difference between the gross and net liability is accounted for as interest under Topic 835 (405-920-30-1).", "The recorded liability must be segregated between current and noncurrent based on the payment terms of the license agreement (405-920-45-1).", "The Subtopic uses the same scope as the Overall Broadcasters Subtopic, Section 920-10-15 (405-920-15-1).", "Example 1 at 920-350-55-1 through 55-7 illustrates the accounting for a television program license agreement (405-920-55-1)." ], "categories": [ "Recognition", "Initial measurement", "Presentation", "Industry-specific" ], "audience_level": "intermediate", "student_note": "This is a rare instance where GAAP permits a policy choice between gross and fair (discounted) value for a liability — students often wrongly assume discounting is mandatory. Remember recognition is triggered by the start of the license period, not by contract signing or payment.", "related_topics": [ "920-350", "920-10", "835", "405-10", "920-405" ], "key_concepts": [ "broadcast license agreement", "program material rights", "license period", "gross versus present value measurement", "imputed interest", "current and noncurrent classification", "broadcaster liabilities" ] } ``` Source downloaded (UTC): 2026-09-10T00:16:39.447Z to 2026-09-10T00:16:39.447Z Record version: sha256:b9a2e3350ace33edbaad727b8fa132c8a086469957a64df50154419c091f99ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 405-920-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/405/920/#00-status) SEC content: no ##### [405-920-00-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:16:39.447Z to 2026-09-10T00:16:39.447Z Record version: sha256:55403fd554eb3706e76e53cd4157d09ebd0bfdda12dd00a93d52563f6450c206 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
BarterSupersededAccounting Standards Update No. 2014-0905/28/2014
920-405-25-2SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T00:16:42.776Z to 2026-09-10T00:16:42.776Z Record version: sha256:be27ea764cf8505d21dcb379bd32d3cec59355428720760f5efc60ea114219e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 405-920-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/405/920/#05-overview-and-background) SEC content: no ##### [405-920-05-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:16:42.776Z to 2026-09-10T00:16:42.776Z Record version: sha256:611480c3bf59e4e5a6e3a0a0933638cf6b9e8bc424d697bea1ada936715fd8f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting and reporting by [broadcasters](https://asc.understandingaccounting.org/glossary/b/#broadcaster "An entity or an affiliated group of entities that transmits radio or television program material.") for obligations incurred under broadcast [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."). Source downloaded (UTC): 2026-09-10T00:16:44.901Z to 2026-09-10T00:16:44.901Z Record version: sha256:cf52de99b00c9b42cb563a0eccd32b2985132597ddad72452b3f64845cb3a45c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 405-920-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/405/920/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [405-920-15-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:16:44.901Z to 2026-09-10T00:16:44.901Z Record version: sha256:e12fafa2327dfa2838bb01041b26ccaac19c96a007c22e13f7ea83ce6a904434 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): 2026-09-10T00:16:50.984Z to 2026-09-10T00:16:50.984Z Record version: sha256:1fc736613441c50239f6d864f50e3a1cefa7bd66317a46642b8993ebda24de9f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 405-920-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/405/920/#25-recognition) SEC content: no #### License Agreement for Program Material ##### [405-920-25-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:16:50.984Z to 2026-09-10T00:16:50.984Z Record version: sha256:3f3eb3d77e8502b818aa3370048c22dc877361570cc55bf8ef288370bcda8aee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [920-350-25-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-25-2) requires that 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 recognize an asset and a liability for the rights acquired and obligations incurred 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 when the license period begins and certain conditions specified in that paragraph are met. ##### [405-920-25-2](https://asc.understandingaccounting.org/asc/405/920/#405-920-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:16:50.984Z to 2026-09-10T00:16:50.984Z Record version: sha256:cf87903b8beedbbe9d70d64968d988cf47b2132c98181fafce5ba79e1f028c80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-10T00:16:52.935Z to 2026-09-10T00:16:52.935Z Record version: sha256:7d2a7eb2c40f491f054799d49dcc02d4d9e26aa1b2eff161efcc96d5e1893561 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 405-920-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/405/920/#30-initial-measurement) SEC content: no #### License Agreement for Program Material ##### [405-920-30-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:16:52.935Z to 2026-09-10T00:16:52.935Z Record version: sha256:a0d0a6bfe6301b9a0aa232ede1d73e06874c28a3046e370fad04d2f5b72a0d5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A licensee shall report 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.") at either of the following: 1. a The fair value of the liability 2. b The gross amount of the liability. If a present value technique is used to measure fair value, the difference between the gross and net liability shall be accounted for as interest in accordance with Topic 835. Source downloaded (UTC): 2026-09-10T00:16:55.184Z to 2026-09-10T00:16:55.184Z Record version: sha256:377cae65dc25acff183a29da3346a72e266bd5e2bfcc10ebd7d78a1a065b319a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 405-920-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/405/920/#45-other-presentation-matters) SEC content: no #### License Agreement for Program Material ##### [405-920-45-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:16:55.184Z to 2026-09-10T00:16:55.184Z Record version: sha256:ebd4ed3da1a02b3a621c5ec7b51ea2dc8a4c79937def8a57b699d1a981a0d012 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The liability recorded for the obligation incurred 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 segregated between current and noncurrent based on the payment terms. Source downloaded (UTC): 2026-09-10T00:16:57.671Z to 2026-09-10T00:16:57.671Z Record version: sha256:0bac087fa65008cd6000cdb3974b991887b512d73653a436ab94e1690e4bcd27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 405-920-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/405/920/#55-implementation-guidance-and-illustrations) SEC content: no #### License Agreement for Program Material ##### [405-920-55-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:16:57.671Z to 2026-09-10T00:16:57.671Z Record version: sha256:21a9b3748dc97881c4dca37bf44cd0dc27340d55266c359ff7cf77301378c8b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1 (paragraphs [920-350-55-1 through 55-7](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-1) ) for an Example illustrating the 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.