ASC

ASC 605-926

Entertainment—Films

605 Revenue Recognition

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In brief

IntroductoryRevenueIndustry-specificTransition and effective datesRecognition

ASC 605-926 formerly contained the industry-specific revenue recognition guidance for entertainment—films (licensing of films to theaters, television, home video, and other markets). Every paragraph in the subtopic — scope, recognition, disclosure, and implementation guidance — was superseded by ASU 2014-09 (the revenue standard). Film revenue is now accounted for under ASC 606, with related industry guidance retained in ASC 926-605 and other 926 subtopics.

Key points (5)
  • All content of ASC 605-926 (Sections 05, 15, 25, 50, and 55) was superseded by Accounting Standards Update No. 2014-09; no substantive guidance remains in force.
  • The legacy criteria for recognizing revenue from film licensing arrangements (for example, persuasive evidence of an arrangement, delivery/availability of the film, fixed or determinable fee, and collectibility) no longer apply after adoption of ASU 2014-09.
  • Entities recognizing revenue from films must instead apply the five-step model in ASC 606, including the licensing implementation guidance for functional versus symbolic intellectual property and sales- or usage-based royalties.
  • Industry-specific film guidance that survived the revenue project is located in ASC 926 (including 926-605 for revenue and 926-20 for film cost capitalization and amortization).
  • ASC 605-926 is retained in the Codification only as a superseded historical reference and for entities' comparative-period presentation under legacy GAAP.

For students. Do not cite ASC 605-926 as live GAAP — it is entirely superseded by ASU 2014-09; the common error is applying the old film licensing "availability" criteria instead of ASC 606's licensing and royalty guidance. Knowing where the guidance moved (ASC 606 and ASC 926-605) is more useful than memorizing the superseded rules.

superseded guidancefilm licensing revenueindustry-specific revenue recognitiontransition to asc 606license of intellectual propertysales- or usage-based royaltiesentertainment—films

Machine-generated study aid for ASC 605-926. Check the source paragraphs below.

605-926-00Status

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605-926-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Cross-Collateralized Superseded Accounting Standards Update No. 2014-09 05/28/2014
Distributor (1st def.) Superseded Accounting Standards Update No. 2014-09 05/28/2014
Films Superseded Accounting Standards Update No. 2014-09 05/28/2014
Market (1st def.) Superseded Accounting Standards Update No. 2014-09 05/28/2014
Nonrefundable Minimum Guarantee Superseded Accounting Standards Update No. 2014-09 05/28/2014
Participation Costs Superseded Accounting Standards Update No. 2014-09 05/28/2014
Producer Superseded Accounting Standards Update No. 2014-09 05/28/2014
Revenue Superseded Accounting Standards Update No. 2014-09 05/28/2014
Significant Changes Superseded Accounting Standards Update No. 2014-09 05/28/2014
Street Date Superseded Accounting Standards Update No. 2014-09 05/28/2014
Territory Superseded Accounting Standards Update No. 2014-09 05/28/2014
926-605-05-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
926-605-15-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
926-605-25-1 through 25-31
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
926-605-25-16 Amended Accounting Standards Update No. 2011-04 05/12/2011
926-605-50-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
926-605-55-1 through 55-13
 Superseded Accounting Standards Update No. 2014-09 05/28/2014

605-926-05Overview and Background

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605-926-15Scope and Scope Exceptions

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605-926-20Glossary

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605-926-25Recognition

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605-926-50Disclosure

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605-926-55Implementation Guidance and Illustrations

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Related subtopics