# ASC 705-926: Cost of Sales and Services — Entertainment—Films

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/705/926/)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

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## ASC 705-926: Cost of Sales and Services — Entertainment—Films

### Machine-generated study aids

```json
{
  "summary": "This Subtopic governs how film production and distribution entities account for costs of manufacturing or duplicating products held for sale, such as videocassettes and digital video discs. Manufacturing/duplication costs are charged to expense on a unit-specific basis when the related product revenue is recognized (705-926-25-1). The cost of theatrical film prints is instead expensed over the period benefited (705-926-25-2).",
  "key_points": [
    "The Subtopic addresses costs incurred by film production and distribution entities to manufacture or duplicate products held for sale, such as videocassettes and video discs (705-926-05-1).",
    "Scope follows the Overall Subtopic on films, Section 926-20-15 (705-926-15-1).",
    "Manufacturing costs are part of the costs of producing a film (705-926-25-1).",
    "Manufacturing or duplication costs of products for sale must be charged to expense on a unit-specific basis when the related product revenue is recognized (705-926-25-1).",
    "The cost of theatrical film prints must be charged to expense over the period benefited (705-926-25-2)."
  ],
  "categories": [
    "Recognition",
    "Industry-specific",
    "Subsequent measurement"
  ],
  "audience_level": "intermediate",
  "student_note": "The key distinction is timing: duplication costs of sellable copies track the specific units' revenue (matching), while theatrical print costs are amortized over the benefit period rather than matched to individual sales. Students often mistakenly lump film print costs in with capitalized film production costs amortized under 926-20.",
  "related_topics": [
    "926-20",
    "926-10",
    "926-605",
    "330",
    "720"
  ],
  "key_concepts": [
    "film costs",
    "manufacturing and duplication costs",
    "unit-specific expense recognition",
    "theatrical film prints",
    "period benefited",
    "cost of sales",
    "product revenue recognition"
  ]
}
```

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## ASC 705-926-00: 00 Status

[Read section](https://asc.understandingaccounting.org/asc/705/926/#00-status)

SEC content: no

##### [705-926-00-1](https://asc.understandingaccounting.org/asc/705/926/#705-926-00-1)

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The following table identifies the changes made to this Subtopic.

<table class="asc-table" id="SL51654628-203242"><tbody><tr><td class="entry"><strong class="ph b">Paragraph</strong></td><td class="entry"><strong class="ph b">Action</strong></td><td class="entry"><strong class="ph b">Accounting Standards Update</strong></td><td class="entry"><strong class="ph b">Date</strong></td></tr><tr><td class="entry"></td><td class="entry"></td><td class="entry"></td><td class="entry"></td></tr><tr><td class="entry"><strong class="ph b">Revenue</strong></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-09/" class="xref">Accounting Standards Update No. 2014-09</a></td><td class="entry">05/28/2014</td></tr><tr><td class="entry"></td><td class="entry"></td><td class="entry"></td><td class="entry"></td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/705/926/#705-926-25-1" class="xref">926-705-25-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-09/" class="xref">Accounting Standards Update No. 2014-09</a></td><td class="entry">05/28/2014</td></tr></tbody></table>

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## ASC 705-926-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/705/926/#05-overview-and-background)

SEC content: no

##### [705-926-05-1](https://asc.understandingaccounting.org/asc/705/926/#705-926-05-1)

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This Subtopic presents the accounting by entities in the film production and distribution industry for costs incurred to manufacture or duplicate products held for sale, such as videocassettes and video discs.

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## ASC 705-926-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/705/926/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [705-926-15-1](https://asc.understandingaccounting.org/asc/705/926/#705-926-15-1)

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 926-20-15.

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## ASC 705-926-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/705/926/#25-recognition)

SEC content: no

#### Costs of Products Held for Sale

##### [705-926-25-1](https://asc.understandingaccounting.org/asc/705/926/#705-926-25-1)

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The costs of producing a film include manufacturing costs. An entity shall charge manufacturing or duplication costs of products for sale, such as videocassettes and digital video discs, to expense on a unit-specific basis when the related product revenue is recognized.

#### Theatrical Film Prints

##### [705-926-25-2](https://asc.understandingaccounting.org/asc/705/926/#705-926-25-2)

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An entity shall charge the cost of theatrical [film prints](https://asc.understandingaccounting.org/glossary/f/#film-prints "Those materials, produced on behalf of a film distributor for delivery to a theater or other similar venue, that contain the completed audio and video elements of a film. Such materials are used by the theater or other similar venue to exhibit the film to its customers.") to expense over the period benefited.