ASC

ASC 440-928

Entertainment—Music

440 Commitments

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In brief

IntermediateDisclosureContingencies and guaranteesIndustry-specific

This Subtopic sets the disclosure requirement for commitments in the music industry. An entity must disclose commitments to pay artist advances in future years and any guarantees obligating it to pay royalties in the future (440-928-50-1). It contains no recognition or measurement guidance—only disclosure.

Key points (5)
  • The Subtopic addresses disclosure of commitments to pay artist advances in the future and guarantees obligating the entity to pay future royalties (440-928-05-1).
  • Scope follows the Entertainment—Music Overall Subtopic scope, Section 928-10-15 (440-928-15-1).
  • Commitments for artist advances payable in future years shall be disclosed (440-928-50-1).
  • Future royalty guarantees shall be disclosed (440-928-50-1).
  • No recognition, initial measurement, or subsequent measurement guidance is provided in this Subtopic; it is disclosure-only.

For students. Remember this is a pure disclosure rule: an unpaid future artist advance commitment or royalty guarantee is disclosed even though it is not yet recognized as a liability. Students often confuse it with the recognition/capitalization rules for advances in ASC 928-340.

artist advancesroyalty guaranteesfuture commitments disclosuremusic industryunrecorded commitments

Machine-generated study aid for ASC 440-928. Check the source paragraphs below.

440-928-05Overview and Background

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440-928-05-1
This Subtopic addresses the disclosure requirements for commitments made by an entity in the music industry to pay artist advances in the future, and for any guarantees obligating the entity to pay royalties in the future.

440-928-15Scope and Scope Exceptions

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440-928-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 928-10-15.

440-928-50Disclosure

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Licensor Accounting

440-928-50-1
Commitments for artist advances payable in future years and future royalty guarantees shall be disclosed.

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