{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/405/926/#55-implementation-guidance-and-illustrations","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"405","topic_title":"Liabilities","subtopic":"405-926","subtopic_title":"Entertainment—Films","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"405-926-55-1","para":"55-1","html":"
This Example illustrates the adjustment of a participation liability that is in excess of a revised estimate of amounts ultimately payable (in accordance with paragraph 926-405-35-1).
","snippet":"This Example illustrates the adjustment of a participation liability that is in excess of a revised estimate of amounts ultimately payable (in accordance with paragraph 926-405-35-1).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e085d5cc7ac7d3b10cb8d725200cabc015fcfcecce1bae83a6e86cd8899822f","downloaded_from":"2026-09-10T00:17:41.616Z","last_downloaded_at":"2026-09-10T00:17:41.616Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478776","source_sha256":"42f0fd1a08fbaf0fb4a49d95ea190db44fa9679b6486d18609c0c272796b09aa"}},{"citation":"405-926-55-2","para":"55-2","html":"
In accordance with paragraph 926-405-35-1, a participation liability that exceeds the unpaid amount expected to be ultimately payable shall be offset against the remaining carrying value of the corresponding film. This scenario can result from changes in ultimate revenue and cost estimates that result in reduced expectations of ultimate participation costs.
","snippet":"In accordance with paragraph 926-405-35-1, a participation liability that exceeds the unpaid amount expected to be ultimately payable shall be offset against the remaining carrying value of the corresponding film. This s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ac7eccb03b11c1907bdc6ce4cc768da5951ce893df0f58b8243861bb2ae13de","downloaded_from":"2026-09-10T00:17:41.616Z","last_downloaded_at":"2026-09-10T00:17:41.616Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478776","source_sha256":"42f0fd1a08fbaf0fb4a49d95ea190db44fa9679b6486d18609c0c272796b09aa"}},{"citation":"405-926-55-3","para":"55-3","html":"
Assume the following:
  1. a
    Film cost: $50,000
  2. b
    Estimated ultimate revenue:
    1. 1
      Year 1: $100,000
    2. 2
      Year 2: $80,000.
  3. c
    Actual revenue recognized:
    1. 1
      In Year 1: $60,000
    2. 2
      In Year 2: $10,000.
  4. d
    Estimated ultimate participation costs:
    1. 1
      Year 1: $10,000
    2. 2
      Year 2: $0.
  5. e
    For Year 1, film cost amortization was $30,000, and participation costs accrued were $6,000.
","snippet":"Assume the following:\n(a) Film cost: $50,000\n(b) Estimated ultimate revenue:\n(1) Year 1: $100,000\n(2) Year 2: $80,000.\n(c) Actual revenue recognized:\n(1) In Year 1: $60,000\n(2) In Year 2: $10,000.\n(d) Estimated ultimate …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8b7c471de282594ccd3efe3453caad75918ad4a639cfbb72ed5f3738bc8afbf1","downloaded_from":"2026-09-10T00:17:41.616Z","last_downloaded_at":"2026-09-10T00:17:41.616Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478776","source_sha256":"42f0fd1a08fbaf0fb4a49d95ea190db44fa9679b6486d18609c0c272796b09aa"}},{"citation":"405-926-55-4","para":"55-4","html":"
Adjustments of Participation Liability and Film Costs in Year 2.
","snippet":"Adjustments of Participation Liability and Film Costs in Year 2.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4f626f07110ee3a07b5a1ac51cfae96b3da6e52fe9a5978833215d42a8e7f8a","downloaded_from":"2026-09-10T00:17:41.616Z","last_downloaded_at":"2026-09-10T00:17:41.616Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478776","source_sha256":"42f0fd1a08fbaf0fb4a49d95ea190db44fa9679b6486d18609c0c272796b09aa"}},{"citation":"405-926-55-5","para":"55-5","html":"
Film cost amortization in Year 2:
","snippet":"Film cost amortization in Year 2:\n$10,000 recognized revenue/$20,000 remaining ultimate revenue x $14,000 unamortized film costs = $7,000\nThe $20,000 remaining ultimate revenue is computed as follows: Year 2 revised ulti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:643795c0ac195a76d8a1cf96470110f95aa421defaf7e8318964a58bb3401a8e","downloaded_from":"2026-09-10T00:17:41.616Z","last_downloaded_at":"2026-09-10T00:17:41.616Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478776","source_sha256":"42f0fd1a08fbaf0fb4a49d95ea190db44fa9679b6486d18609c0c272796b09aa"}},{"citation":"405-926-55-6","para":"55-6","html":"
Participation costs accrued in Year 2:
","snippet":"Participation costs accrued in Year 2:\n$10,000 recognized revenue/$20,000 remaining ultimate revenue x $0 remaining ultimate participation costs = $0\nThe $20,000 remaining ultimate revenue is computed as follows: Year 2 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b314be987226642014239525d0e1e90618f6aab23a20cf7a1a6c74f49182ed3","downloaded_from":"2026-09-10T00:17:41.616Z","last_downloaded_at":"2026-09-10T00:17:41.616Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478776","source_sha256":"42f0fd1a08fbaf0fb4a49d95ea190db44fa9679b6486d18609c0c272796b09aa"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af020fca95158086d744c07791d4695453bc1f19892f59730a4592211572f00b","downloaded_from":"2026-09-10T00:17:41.616Z","last_downloaded_at":"2026-09-10T00:17:41.616Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478776","source_sha256":"42f0fd1a08fbaf0fb4a49d95ea190db44fa9679b6486d18609c0c272796b09aa"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c6f88fbf1510b548791908cc011b169293ed42db2147dee146c38641bd16d86","downloaded_from":"2026-09-10T00:17:41.616Z","last_downloaded_at":"2026-09-10T00:17:41.616Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478776","source_sha256":"42f0fd1a08fbaf0fb4a49d95ea190db44fa9679b6486d18609c0c272796b09aa"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c6f88fbf1510b548791908cc011b169293ed42db2147dee146c38641bd16d86","downloaded_from":"2026-09-10T00:17:41.616Z","last_downloaded_at":"2026-09-10T00:17:41.616Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478776","source_sha256":"42f0fd1a08fbaf0fb4a49d95ea190db44fa9679b6486d18609c0c272796b09aa"}}