ASC 440-920
Entertainment—Broadcasters
440 Commitments
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This Subtopic governs disclosure by broadcasters of program license agreements that have been signed (executed) but that do not yet qualify for recognition as an asset and liability on the balance sheet. The single rule is that such executory license commitments must be disclosed in the notes, even though they are not recorded, because the recognition conditions in 920-350-25-2 have not been met.
Key points (4)
- Per 440-920-05-1, the Subtopic addresses only the disclosure of executed broadcast license agreements that fail the conditions for recording a liability.
- Per 440-920-50-1, broadcasters shall disclose commitments for license agreements that have been executed but were not reported because they do not meet the recognition conditions in 920-350-25-2.
- Recognition of the license asset and corresponding liability is governed elsewhere (920-350-25-2); this Subtopic supplies only the disclosure requirement for the unrecognized commitments.
- Per 440-920-15-1, the scope follows the broadcaster scope and scope exceptions in Section 920-10-15.
For students. Exam trap: signing a program license contract does not by itself create a recorded liability for a broadcaster — recognition waits until the 920-350-25-2 conditions are met, but the signed commitment must still be disclosed in the notes.
Machine-generated study aid for ASC 440-920. Check the source paragraphs below.
440-920-05Overview and Background
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440-920-15Scope and Scope Exceptions
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Overall Guidance
440-920-50Disclosure
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