# ASC 720-922: Other Expenses — Entertainment—Cable Television Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/922/) 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. Source downloaded (UTC): 2026-09-10T01:09:40.397Z to 2026-09-10T01:09:54.134Z Record version: sha256:f16f62c6b1f2fd3d29ed0b224d51d3d5547e7710223a97ef553f7576cd75425b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-922: Other Expenses — Entertainment—Cable Television ### Machine-generated study aids ```json { "summary": "This Subtopic tells cable television entities which industry-specific costs must be expensed rather than capitalized. During the prematurity period (while a cable system is being built out and partially marketed), subscriber-related costs and general and administrative expenses are period costs. Costs of disconnecting/reconnecting subscribers after initial installation, and costs of unsuccessful franchise applications or abandoned franchises, are also charged to expense.", "key_points": [ "During the prematurity period, subscriber-related costs and general and administrative expenses shall be expensed as period costs (720-922-25-1).", "Accounting during the prematurity period for certain programming costs and other system costs is addressed instead in 922-350-25-1 (720-922-25-2).", "After the initial installation described in 922-360-25-7, costs incurred for disconnecting and reconnecting subscribers shall be charged to expense (720-922-25-3).", "Costs of unsuccessful franchise applications and abandoned franchises shall be charged to expense; successful franchise application costs are accounted for under 922-350-25-3 (720-922-25-4).", "The Subtopic's scope follows the cable television Overall Subtopic scope in Section 922-10-15 (720-922-15-1)." ], "categories": [ "Recognition", "Industry-specific", "Intangibles and goodwill" ], "audience_level": "intermediate", "student_note": "The exam trap is the capitalize-versus-expense line: initial hookup/installation costs and successful franchise costs may be capitalized under 922-350 and 922-360, but subscriber-related and G&A costs during the prematurity period, later disconnect/reconnect costs, and unsuccessful or abandoned franchise costs are always expensed. Students often assume all prematurity-period costs are capitalized because the system is not yet fully operating.", "related_topics": [ "922-10", "922-350", "922-360", "720-10", "350-30" ], "key_concepts": [ "prematurity period", "subscriber-related costs", "general and administrative expenses", "hookup costs", "disconnect and reconnect costs", "unsuccessful franchise application costs", "abandoned franchises", "period costs" ] } ``` Source downloaded (UTC): 2026-09-10T01:09:40.397Z to 2026-09-10T01:09:40.397Z Record version: sha256:c8bf9defdefe1d1f46c559acc7e422243e9a94ae90c4a8c5769ca9d80d9d77f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-922-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/720/922/#00-status) SEC content: no ##### [720-922-00-1](https://asc.understandingaccounting.org/asc/720/922/#720-922-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:09:40.397Z to 2026-09-10T01:09:40.397Z Record version: sha256:45ebcaadd5003226c84c449a43f24cf8b04c653dd73f33edad6154763f53d484 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No updates have been made to this subtopic. Source downloaded (UTC): 2026-09-10T01:09:42.917Z to 2026-09-10T01:09:42.917Z Record version: sha256:23d099f7b903c1cc4cb305e765a988664d1e4a35b37e7835618c565e6bebeba2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-922-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/720/922/#05-overview-and-background) SEC content: no ##### [720-922-05-1](https://asc.understandingaccounting.org/asc/720/922/#720-922-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:09:42.917Z to 2026-09-10T01:09:42.917Z Record version: sha256:b28778f70a9365ae5489bd9abd79f3a893b6c22e94da68a9f65648f0ba73bee2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for certain costs incurred by entities in the cable television industry, such as [subscriber-related costs](https://asc.understandingaccounting.org/glossary/s/#subscriber-related-costs "Costs incurred to obtain and retain subscribers to the cable television system, including costs of billing and collection, bad debts, and mailings; repairs and maintenance of taps and connections; franchise fees related to revenues or number of subscribers; general and administrative system costs, such as salary of the system manager and office rent; programming costs for additional channels used in the marketing effort or costs related to revenues from, or number of subscribers to, per-channel or per-program service; and direct selling costs."), hookup costs, and unsuccessful franchise applications costs. Source downloaded (UTC): 2026-09-10T01:09:46.811Z to 2026-09-10T01:09:46.811Z Record version: sha256:846dbe27e9b11b491075a1edcf6b4668100b83b6ccb8de1a5f7b9e854f57c079 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-922-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/720/922/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [720-922-15-1](https://asc.understandingaccounting.org/asc/720/922/#720-922-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:09:46.811Z to 2026-09-10T01:09:46.811Z Record version: sha256:a5d07bf3d000f80d3c880c56cf468efbeb393c715994810c937f47f65285297c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 922-10-15. Source downloaded (UTC): 2026-09-10T01:09:54.134Z to 2026-09-10T01:09:54.134Z Record version: sha256:d8757602723482cbfb61c604fa030ad2aed317fd32ddada74179219dab2f9fae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-922-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/720/922/#25-recognition) SEC content: no #### Prematurity Period ##### [720-922-25-1](https://asc.understandingaccounting.org/asc/720/922/#720-922-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:09:54.134Z to 2026-09-10T01:09:54.134Z Record version: sha256:dc500830c305e51c3d72091c38095e9ffdd4126c1cdc0aff3b5c5555da1351eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the [prematurity period](https://asc.understandingaccounting.org/glossary/p/#prematurity-period "During the prematurity period, the cable television system is partially under construction and partially in service. The prematurity period begins when revenue from the first subscriber is recognized in accordance with Topic 606 on revenue from contracts with customers.Its end will vary with circumstances of the system but will be determined based on plans for completion of the first major construction period or achievement of a specified predetermined subscriber level at which no additional investment will be required for other than cable television plant. The construction period of a cable television system varies with the size of the franchise area, density of population, and difficulty of physical construction. The construction period is not completed until the head-end, main cable, and distribution cables are installed, and includes a reasonable time to provide for installation of subscriber drops and related hardware. During the construction period, many system operators complete installation of drops and begin to provide service to some subscribers in some parts of the system while construction continues. Providing the signal for the first time is referred to as energizing the system. The length of the prematurity period varies with the franchise development and construction plans. Such plans may consist of any of the following: Small franchise that is characterized by the absence of free television signal and a short construction period. The entire system is energized at one time near the end of the construction period. Medium-size franchise that is characterized by some direct competition from free television and by a more extensive geographical franchise area lending itself to incremental construction. Some parts of the system are energized as construction progresses. Large metropolitan franchise that is characterized by heavy direct competition from free television and fringe area signal inadequacy, high cost, and difficult construction. Many parts of the system are energized as construction progresses. Except in the smallest systems, programming is usually delivered to portions of the system and some revenues are obtained before construction of the entire system is complete. Thus, virtually every cable television system experiences a prematurity period during which it is receiving some revenue while continuing to incur substantial costs related to the establishment of the total system."), any [subscriber-related costs](https://asc.understandingaccounting.org/glossary/s/#subscriber-related-costs "Costs incurred to obtain and retain subscribers to the cable television system, including costs of billing and collection, bad debts, and mailings; repairs and maintenance of taps and connections; franchise fees related to revenues or number of subscribers; general and administrative system costs, such as salary of the system manager and office rent; programming costs for additional channels used in the marketing effort or costs related to revenues from, or number of subscribers to, per-channel or per-program service; and direct selling costs.") and general and administrative expenses shall be expensed as period costs. ##### [720-922-25-2](https://asc.understandingaccounting.org/asc/720/922/#720-922-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:09:54.134Z to 2026-09-10T01:09:54.134Z Record version: sha256:84eb6c4a33bfac6121046ffa95dc3c36a3b6e6035263e5d0d5ebfd85a52a0637 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on accounting during the prematurity period for certain programming costs and other system costs, see paragraph [922-350-25-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-1). #### Hookup Costs ##### [720-922-25-3](https://asc.understandingaccounting.org/asc/720/922/#720-922-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:09:54.134Z to 2026-09-10T01:09:54.134Z Record version: sha256:aa8fba489da0a6d0ab79703550559d5f7b34e6c0578591a874d6ceba94c43e17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After the initial installation as described in paragraph [922-360-25-7](https://asc.understandingaccounting.org/asc/360/922/#360-922-25-7), costs incurred for disconnecting and reconnecting shall be charged to expense. #### Unsuccessful Franchise Applications and Abandoned Franchises ##### [720-922-25-4](https://asc.understandingaccounting.org/asc/720/922/#720-922-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:09:54.134Z to 2026-09-10T01:09:54.134Z Record version: sha256:bbf69fe283893200c4826be5d30913239f34e15d6bf1d77c60fdd797c7cb9e17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of unsuccessful franchise applications and abandoned franchises shall be charged to expense. Refer to paragraph [922-350-25-3](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-3) for guidance on the accounting for the costs of successful franchise applications.