# ASC 440-928: Commitments — Entertainment—Music

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/440/928/)

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Source downloaded (UTC): 2026-09-10T00:25:52.692Z to 2026-09-10T00:26:04.387Z

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## ASC 440-928: Commitments — Entertainment—Music

### Machine-generated study aids

```json
{
  "summary": "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": [
    "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."
  ],
  "categories": [
    "Disclosure",
    "Contingencies and guarantees",
    "Industry-specific"
  ],
  "audience_level": "intermediate",
  "student_note": "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.",
  "related_topics": [
    "928-10",
    "928-340",
    "928-430",
    "440-10",
    "460-10"
  ],
  "key_concepts": [
    "artist advances",
    "royalty guarantees",
    "future commitments disclosure",
    "music industry",
    "unrecorded commitments"
  ]
}
```

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## ASC 440-928-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/440/928/#05-overview-and-background)

SEC content: no

##### [440-928-05-1](https://asc.understandingaccounting.org/asc/440/928/#440-928-05-1)

Pending content: no

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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](https://asc.understandingaccounting.org/glossary/r/#royalties "Amounts paid to record producers, songwriters, or other artists for their participation in making records and to music publishers for their copyright interest in music. Amounts for artists are determined by the terms of personal service contracts negotiated between the artists and record entities and usually are determined based upon a percentage of sales activity and license fee income, adjusted for estimated sales returns. Royalties for publishing are based on the copyright or other applicable laws, but the requirements of the law may be modified by licenses issued by the publishers.") in the future.

Source downloaded (UTC): 2026-09-10T00:25:55.202Z to 2026-09-10T00:25:55.202Z

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## ASC 440-928-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/440/928/#15-scope-and-scope-exceptions)

SEC content: no

##### [440-928-15-1](https://asc.understandingaccounting.org/asc/440/928/#440-928-15-1)

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

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## ASC 440-928-50: 50 Disclosure

[Read section](https://asc.understandingaccounting.org/asc/440/928/#50-disclosure)

SEC content: no

#### Licensor Accounting

##### [440-928-50-1](https://asc.understandingaccounting.org/asc/440/928/#440-928-50-1)

Pending content: no

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Commitments for artist advances payable in future years and future [royalty](https://asc.understandingaccounting.org/glossary/r/#royalties "Amounts paid to record producers, songwriters, or other artists for their participation in making records and to music publishers for their copyright interest in music. Amounts for artists are determined by the terms of personal service contracts negotiated between the artists and record entities and usually are determined based upon a percentage of sales activity and license fee income, adjusted for estimated sales returns. Royalties for publishing are based on the copyright or other applicable laws, but the requirements of the law may be modified by licenses issued by the publishers.") guarantees shall be disclosed.