ASC 720-924
Entertainment—Casinos
720 Other Expenses
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This Subtopic governs how a casino entity accounts for the cost of promotional allowances — complimentary goods and services (comps) such as rooms, food, beverages, and entertainment given to customers. Its single substantive rule is that the cost of providing those promotional allowances is included in costs and expenses (720-924-25-1). Scope follows the casino Overall Subtopic, Section 924-10-15.
Key points (4)
- The Subtopic addresses accounting and reporting for the cost of promotional allowances provided by a casino entity to a customer (720-924-05-1).
- Scope is the same as the casino Overall Subtopic, Section 924-10-15 (720-924-15-1).
- The cost of providing promotional allowances shall be included in costs and expenses (720-924-25-1).
- The guidance addresses the cost side of comps; it does not itself prescribe the revenue presentation of promotional allowances.
For students. Casinos give away large volumes of "comps," and this rule keeps their cost in operating costs and expenses rather than netting it against gaming revenue. A common misunderstanding is confusing this cost-recognition rule with the separate revenue-side question of how (or whether) complimentaries are reported as revenue, which is addressed under the casino revenue guidance (now driven by ASC 606).
Machine-generated study aid for ASC 720-924. Check the source paragraphs below.
720-924-05Overview and Background
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720-924-15Scope and Scope Exceptions
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Overall Guidance
720-924-25Recognition
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