{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/405/926/","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.","number":"405-926","topic":"405","title":"Entertainment—Films","area":"Liabilities","paragraphs":19,"summary":"ASC 405-926 governs how film production and distribution entities accrue participation costs — amounts owed to third parties such as actors and writers — and costs of insignificant post-release changes to a film. Participation costs are accrued using the individual-film-forecast-computation method (current period actual revenue over estimated remaining unrecognized ultimate revenue at the beginning of the fiscal year), but only when it is probable an entity will sacrifice assets to settle the obligation, and never for less than amounts currently payable. If the recorded participation liability exceeds estimated unpaid ultimate participation costs, the excess reduces unamortized film costs first, then goes to income.","concepts":["participation costs","individual-film-forecast-computation method","ultimate revenue","unamortized film costs","probable sacrifice of assets","film cost amortization","insignificant changes to a film","accrued participation liability"],"categories":["Recognition","Subsequent measurement","Disclosure","Industry-specific"],"level":"intermediate","topic_title":"Liabilities","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"405-926-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
RevenueSupersededAccounting Standards Update No. 2014-0905/28/2014
Significant ChangesSupersededAccounting Standards Update No. 2019-0203/06/2019
Significant Changes to a FilmAddedAccounting Standards Update No. 2019-0203/06/2019
926-405-25-1AmendedAccounting Standards Update No. 2014-0905/28/2014
926-405-55-2AmendedAccounting Standards Update No. 2014-0905/28/2014
926-405-55-3AmendedAccounting Standards Update No. 2014-0905/28/2014
926-405-55-5AmendedAccounting Standards Update No. 2014-0905/28/2014
926-405-55-6AmendedAccounting Standards Update No. 2014-0905/28/2014
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This Subtopic provides guidance to entities in the film production and distribution industry on the accounting for costs incurred to compensate third parties involved in the production of a film, such as actors or writers. These costs are referred to as participation costs. This Subtopic also addresses the accounting for costs incurred to make insignificant changes to a film after its initial availability to a customer.
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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 926-10-15.
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An entity shall accrue (expense) participation costs using the individual-film-forecast-computation method, which accrues (expenses) such costs in the same ratio that current period actual revenue (numerator) bears to estimated remaining unrecognized ultimate revenue as of the beginning of the current fiscal year (denominator). That is, unaccrued (not yet expensed) ultimate participation costs at the beginning of the current fiscal year are multiplied by the individual-film-forecast-computation method fraction. In this way, in the absence of changes in estimates, participation costs are accrued (expensed) in a manner that yields a constant rate of profit over the ultimate period, as described in paragraph 926-20-35-5(a), for each film before exploitation costs, manufacturing costs, and other period expenses.
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An entity shall accrue a liability for participation costs only if it is probable that there will be a sacrifice of assets to settle its obligation under the terms of the participation agreement. At each balance sheet date, accrued participation costs shall not be less than the amounts that an entity is obligated to pay as of that date.
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An entity shall begin accruing (expensing) participation costs when a film is released and it begins to recognize revenue from that film.
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Estimates of unaccrued (that is, not yet expensed) ultimate participation costs are used in the individual-film-forecast-computation method to arrive at current period participation cost expense. Such costs shall be determined using assumptions that are consistent with an entity's estimates of film costs, exploitation costs, and ultimate revenue, as limited by paragraphs 926-20-35-5 and 926-20-35-11.
","snippet":"Estimates of unaccrued (that is, not yet expensed) ultimate participation costs are used in the individual-film-forecast-computation method to arrive at current period participation cost expense. Such costs shall be dete…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:98b2c4ad44bc896635f738e89e9b4deeace98810004fbd0fbb773f9df402c63f","downloaded_from":"2026-09-10T00:17:32.820Z","last_downloaded_at":"2026-09-10T00:17:32.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477848","source_sha256":"c9cb94e62650a444c6763d733dd8b632a222b3d551dbfa57b37f593d9a089282"}},{"citation":"405-926-25-5","para":"25-5","html":"
A film may continue to generate revenue after its film costs are fully amortized. When revenue is recorded on fully amortized films, an entity shall accrue associated participation costs as that revenue is recognized.
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A licensing arrangement may require an entity to make changes to a film after its initial availability to a customer. Those changes may be deemed significant or not significant. Any costs expected to be incurred for changes that are not significant shall be accrued and charged to expense if an entity begins to recognize revenue from the arrangement before incurring those costs.
","snippet":"A licensing arrangement may require an entity to make changes to a film after its initial availability to a customer. Those changes may be deemed significant or not significant. Any costs expected to be incurred for chan…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c79cea9c8e6f8e6aea511f7432004cc78c375806a995d57be51f2ad2eced939","downloaded_from":"2026-09-10T00:17:32.820Z","last_downloaded_at":"2026-09-10T00:17:32.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477848","source_sha256":"c9cb94e62650a444c6763d733dd8b632a222b3d551dbfa57b37f593d9a089282"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:180453256ae22f11d0f7dca7ec66901a73745b859d625a8451e9fd040832dace","downloaded_from":"2026-09-10T00:17:32.820Z","last_downloaded_at":"2026-09-10T00:17:32.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477848","source_sha256":"c9cb94e62650a444c6763d733dd8b632a222b3d551dbfa57b37f593d9a089282"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:60828de462cdd6c68385e0d95365535509ca174b424ac38b2e6c4e4db8566a5b","downloaded_from":"2026-09-10T00:17:32.820Z","last_downloaded_at":"2026-09-10T00:17:32.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477848","source_sha256":"c9cb94e62650a444c6763d733dd8b632a222b3d551dbfa57b37f593d9a089282"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Ultimate Participation Costs","paragraphs":[{"citation":"405-926-35-1","para":"35-1","html":"
If, at any balance sheet date, the recognized participation costs liability exceeds the estimated unpaid ultimate participation costs for an individual film, the excess liability shall be reduced with an offsetting credit to unamortized film costs. To the extent that an excess liability exceeds unamortized film costs for that film, that excess liability shall be credited to income. For more information, see Example 1 (paragraph 926-405-55-1).
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For the accounting of revised estimates of participation costs, see paragraph 926-20-35-3.
","snippet":"For the accounting of revised estimates of participation costs, see paragraph 926-20-35-3.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e94773533a5ee7b55e512b4bafaab3b9f5b22e58b9e336abffec444a7936cad7","downloaded_from":"2026-09-10T00:17:35.142Z","last_downloaded_at":"2026-09-10T00:17:35.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478066","source_sha256":"4e3e3c1a64a3b0f9c08ccb48d85396376ffa621f42ef632b02871c794ebb43c2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ff8c7d34e86ad8cf4a20be5c7784bf021018f5a2fc5a5ae9bfde2ce46aecf0d","downloaded_from":"2026-09-10T00:17:35.142Z","last_downloaded_at":"2026-09-10T00:17:35.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478066","source_sha256":"4e3e3c1a64a3b0f9c08ccb48d85396376ffa621f42ef632b02871c794ebb43c2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0186a825a2bb287d0d6a88270ab351cab8dca6fee3f821cab601396b257bce9","downloaded_from":"2026-09-10T00:17:35.142Z","last_downloaded_at":"2026-09-10T00:17:35.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478066","source_sha256":"4e3e3c1a64a3b0f9c08ccb48d85396376ffa621f42ef632b02871c794ebb43c2"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Accrued Participation Liabilities","paragraphs":[{"citation":"405-926-50-1","para":"50-1","html":"
An entity shall disclose the amount of accrued participation liabilities that it expects to pay during the upcoming operating cycle.
","snippet":"An entity shall disclose the amount of accrued participation liabilities that it expects to pay during the upcoming operating cycle.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef88dba3cfd63ca041006bde39a5092297ca8500f0452ed8542ce1fb87b13d6b","downloaded_from":"2026-09-10T00:17:38.268Z","last_downloaded_at":"2026-09-10T00:17:38.268Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477694","source_sha256":"50c0b0c92c4198439710d3173d992260a66bc547c8b49a370f15f3883a85dc99"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1dc45df4d6aa5e07544020752f72b84064c15abea5a63d6bc33cef7a80a3e22","downloaded_from":"2026-09-10T00:17:38.268Z","last_downloaded_at":"2026-09-10T00:17:38.268Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477694","source_sha256":"50c0b0c92c4198439710d3173d992260a66bc547c8b49a370f15f3883a85dc99"}},{"block":null,"heading":"Participation Costs","paragraphs":[{"citation":"405-926-50-2","para":"50-2","html":"
An entity shall disclose its methods of accounting for participation costs.
","snippet":"An entity shall disclose its methods of accounting for participation costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9591818af84e6397b30c7c6b20615e6bbffd98dd7862447bb9b186230ca09efe","downloaded_from":"2026-09-10T00:17:38.268Z","last_downloaded_at":"2026-09-10T00:17:38.268Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477694","source_sha256":"50c0b0c92c4198439710d3173d992260a66bc547c8b49a370f15f3883a85dc99"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:67b9913abeb3176677edec62cdb052161ea53e1f1cf12ef137b85f6a9e886168","downloaded_from":"2026-09-10T00:17:38.268Z","last_downloaded_at":"2026-09-10T00:17:38.268Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477694","source_sha256":"50c0b0c92c4198439710d3173d992260a66bc547c8b49a370f15f3883a85dc99"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:def930361671081698638c01a471f04672641f2713ed5ecc3004015531e70b9b","downloaded_from":"2026-09-10T00:17:38.268Z","last_downloaded_at":"2026-09-10T00:17:38.268Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477694","source_sha256":"50c0b0c92c4198439710d3173d992260a66bc547c8b49a370f15f3883a85dc99"}},{"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"}}],"enrichment":{"summary":"ASC 405-926 governs how film production and distribution entities accrue participation costs — amounts owed to third parties such as actors and writers — and costs of insignificant post-release changes to a film. Participation costs are accrued using the individual-film-forecast-computation method (current period actual revenue over estimated remaining unrecognized ultimate revenue at the beginning of the fiscal year), but only when it is probable an entity will sacrifice assets to settle the obligation, and never for less than amounts currently payable. If the recorded participation liability exceeds estimated unpaid ultimate participation costs, the excess reduces unamortized film costs first, then goes to income.","key_points":["Participation costs are accrued using the individual-film-forecast-computation method, applying the fraction of current period actual revenue over estimated remaining unrecognized ultimate revenue as of the beginning of the fiscal year to unaccrued ultimate participation costs (405-926-25-1).","A participation liability is accrued only if it is probable there will be a sacrifice of assets to settle the obligation, and accrued participation costs at each balance sheet date shall not be less than amounts the entity is obligated to pay as of that date (405-926-25-2).","Accrual begins when the film is released and the entity begins recognizing revenue from that film, and continues on fully amortized films as revenue is recognized (405-926-25-3; 405-926-25-5).","Estimates of unaccrued ultimate participation costs must use assumptions consistent with the entity's estimates of film costs, exploitation costs, and ultimate revenue, as limited by 926-20-35-5 and 926-20-35-11 (405-926-25-4).","Costs expected for changes to a film that are not significant under a licensing arrangement are accrued and charged to expense if revenue recognition begins before the costs are incurred (405-926-25-6).","Any recognized participation liability in excess of estimated unpaid ultimate participation costs is reduced with an offsetting credit to unamortized film costs, and only the remainder beyond unamortized film costs is credited to income (405-926-35-1; Example 1 at 926-405-55-1).","Disclose the amount of accrued participation liabilities expected to be paid during the upcoming operating cycle and the methods of accounting for participation costs (405-926-50-1; 405-926-50-2)."],"categories":["Recognition","Subsequent measurement","Disclosure","Industry-specific"],"audience_level":"intermediate","student_note":"The classic trap is treating participation costs as ratably expensed or as payable-based; instead they follow the same revenue-based forecast ratio as film cost amortization, floored at amounts currently due. Also remember the excess-liability reversal cascades to unamortized film costs first — income only after film costs are exhausted.","related_topics":["926-20","926-10","926-405","450-20","606"],"key_concepts":["participation costs","individual-film-forecast-computation method","ultimate revenue","unamortized film costs","probable sacrifice of assets","film cost amortization","insignificant changes to a film","accrued participation liability"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b20e4f4ffc566f6e8ee737533a8bace0715325e455a605fb23befa5c53c7bcf","downloaded_from":"2026-09-10T00:17:22.936Z","last_downloaded_at":"2026-09-10T00:17:44.605Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"926-20","title":"Other Assets—Film Costs","topic_title":"Entertainment—Films","score":0.7993,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb0678611dcb86ac02b9b5824735b221214112f616a5b37e8734812f86185f0f","downloaded_from":"2026-09-10T02:11:36.539Z","last_downloaded_at":"2026-09-10T02:12:10.722Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"720-926","title":"Entertainment—Films","topic_title":"Other Expenses","score":0.7264,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffe9dfa812b28502f4d28831bd108509fef50b5964fdd62f55c8b3f3552e947b","downloaded_from":"2026-09-10T01:10:05.518Z","last_downloaded_at":"2026-09-10T01:10:20.638Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"350-920","title":"Entertainment—Broadcasters","topic_title":"Intangibles—Goodwill and Other","score":0.7016,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:acba371680c68f1f1bac6108b2f650a028d887f14b6c2ef6b328a2b150c61712","downloaded_from":"2026-09-10T00:03:46.608Z","last_downloaded_at":"2026-09-10T00:04:16.226Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"430-926","title":"Entertainment—Films","topic_title":"Deferred Revenue","score":0.6988,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96b36adde2ef0f4a1aa6a871d5a54d48c6a38bcc311cfda57bfe053144f82f0c","downloaded_from":"2026-09-10T00:24:00.334Z","last_downloaded_at":"2026-09-10T00:24:12.601Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"808-10","title":"Overall","topic_title":"Collaborative Arrangements","score":0.6942,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b969073c341e747437cfeb91d91c9f493d4cdaaab60b4511e16609e55220884e","downloaded_from":"2026-09-10T01:28:13.879Z","last_downloaded_at":"2026-09-10T01:28:40.651Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"230-926","title":"Entertainment—Films","topic_title":"Statement of Cash Flows","score":0.6942,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07dd94d9c140d6317ccfad99a4da7cea14f0d4c3d6ce868b2d40ca2a3330fa60","downloaded_from":"2026-09-09T23:12:42.609Z","last_downloaded_at":"2026-09-09T23:12:53.235Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"405-924","title":"Entertainment—Casinos","topic_title":"Liabilities","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e60061b768cac2d43276c97add7b70e836055ec7771d0fd8fa343fb3b96f36c7","downloaded_from":"2026-09-10T00:17:03.163Z","last_downloaded_at":"2026-09-10T00:17:19.253Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"405-928","title":"Entertainment—Music","topic_title":"Liabilities","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:82ad4c2135ee4a8a096c6eae222f7aa7ea7673432b998f0f7bc979540bb7aea5","downloaded_from":"2026-09-10T00:17:48.299Z","last_downloaded_at":"2026-09-10T00:17:59.597Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9b3fb6efddb8c1cabb677250cb432404d3317b8c449cf881b91ab8b1ff39706c","downloaded_from":"2026-09-10T00:17:22.936Z","last_downloaded_at":"2026-09-10T00:17:44.605Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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