# ASC 405-924-55: Liabilities — Entertainment—Casinos — 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/405/924/#55-implementation-guidance-and-illustrations)

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## ASC 405-924-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/405/924/#55-implementation-guidance-and-illustrations)

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#### Implementation Guidance

##### [405-924-55-1](https://asc.understandingaccounting.org/asc/405/924/#405-924-55-1)

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The implementation guidance in this paragraph and the following paragraph addresses the application of paragraph [924-405-25-2](https://asc.understandingaccounting.org/asc/405/924/#405-924-25-2). Some [slot machines](https://asc.understandingaccounting.org/glossary/s/#slot-machine "A type of mechanical or electrical apparatus used in connection with gaming.") or other games may contain [base jackpots](https://asc.understandingaccounting.org/glossary/b/#base-jackpot "The fixed, minimum amount of a slot machine payout for a specific combination."). Depending on the applicable gaming regulations, an entity may be able to avoid the payment of a base jackpot, for example, by removing the machine from play. In accordance with the guidance in paragraph [924-405-25-2](https://asc.understandingaccounting.org/asc/405/924/#405-924-25-2), no liability associated with the base jackpot is recognized in such cases until the entity has the obligation to pay the base jackpot. That is the case even if the entity has no intention of removing the machine from play and expects the base jackpot to ultimately be won.

##### [405-924-55-2](https://asc.understandingaccounting.org/asc/405/924/#405-924-55-2)

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This implementation guidance addresses the application of paragraph [924-405-25-2](https://asc.understandingaccounting.org/asc/405/924/#405-924-25-2). Some slot machines or other gaming machines include progressive jackpots. Entities in many gaming jurisdictions cannot avoid payment of the portion of the progressive jackpot that is incremental to the base jackpot because the gaming regulators consider the incremental portion of the jackpot to be funded by customers and required to be paid out (whether as a jackpot or through other means, such as a raffle). Paragraph [924-405-25-2](https://asc.understandingaccounting.org/asc/405/924/#405-924-25-2) requires that, in such cases, the incremental portion of the jackpot be accrued as a liability at the time of funding (play) by its customers.