ASC 605-928
Entertainment—Music
605 Revenue Recognition
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ASC 605-928 formerly provided industry-specific revenue recognition guidance for the music industry (licensors of music rights, record masters, and related fees). Every paragraph in the subtopic — scope, recognition, initial measurement, and relationships sections — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). Entities now account for music-industry revenue under ASC 606 and, for licensing arrangements, ASC 606-10-55-54 through 55-65, with residual industry guidance in ASC 928.
Key points (6)
- Every paragraph of ASC 605-928 (605-928-05-1, 15-1, 25-1 through 25-3, 30-1, and 60-1) is marked 'superseded by Accounting Standards Update No. 2014-09' and carries no remaining authoritative content.
- The former guidance conditioned recognition of licensed music rights fees on criteria such as a signed noncancelable contract, a fixed fee, delivery of the rights, and collectibility — those bright-line conditions no longer apply.
- Music revenue is now recognized under the ASC 606 five-step model, including the licensing implementation guidance distinguishing functional (point-in-time) from symbolic (over-time) intellectual property in 606-10-55-58 through 55-60.
- Sales- or usage-based royalties from licenses of intellectual property, common in music, are recognized under the constraint in 606-10-55-65 when the later of the subsequent sale/usage occurring or the performance obligation being satisfied.
- Remaining music-industry-specific guidance (for example, on record masters and artist advances) resides in ASC 928, not in this superseded revenue subtopic.
- Researchers should treat ASC 605-928 as historical only, useful for understanding pre-2014-09 practice and transition comparisons.
For students. This subtopic is a shell: its only exam-relevant fact is that ASU 2014-09 wiped out the music industry's separate revenue rules. The common mistake is citing the old fixed-fee/delivery criteria for licensed music rights instead of applying ASC 606's licensing and royalty-constraint guidance.
Machine-generated study aid for ASC 605-928. Check the source paragraphs below.
605-928-00Status
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| Paragraph | Action | Accounting Standards Update | Date |
| License Agreements | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| Minimum Guarantee | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| Record Master | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| 928-605-05-1 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| 928-605-15-1 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 | |
| 928-605-30-1 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| 928-605-60-1 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
605-928-05Overview and Background
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605-928-15Scope and Scope Exceptions
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605-928-20Glossary
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605-928-25Recognition
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605-928-30Initial Measurement
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605-928-60Relationships
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