{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/720/926/","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","number":"720-926","topic":"720","title":"Entertainment—Films","area":"Expenses","paragraphs":6,"summary":"This Subtopic governs how film production and distribution entities account for certain costs incurred to develop and market a film, including overall deal costs and exploitation costs. Costs of overall deals that cannot be identified with specific projects are charged to expense as incurred over the related time period (720-926-25-1), advertising costs follow Subtopic 720-35 (720-926-25-2), and all other exploitation costs, including marketing costs, are expensed as incurred (720-926-25-3).","concepts":["exploitation costs","overall deal arrangements","participation costs","advertising costs","marketing costs","expense as incurred","film production and distribution"],"categories":["Recognition","Disclosure","Industry-specific"],"level":"intermediate","topic_title":"Other Expenses","sections":[{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"720-926-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic addresses the accounting by entities in the film production and distribution industry for certain compensation and other costs incurred to develop and <a href=\"/glossary/m/#market\" class=\"term\" title=\"A distribution channel within a certain territory. Examples of markets include theatrical exhibition, home video, pay television, free television, and the licensing of film-related products.\"><span>market</span></a> a film.<span class=\"sfragment\" id=\"sfr_E31FA5A4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> Those costs include participation and <a href=\"/glossary/e/#exploitation-costs\" class=\"term\" title=\"All direct costs (including marketing, advertising, publicity, promotion, and other distribution expenses) incurred in connection with the distribution of a film.\"><span>exploitation costs</span></a>. </span></span></div></div>","snippet":"This Subtopic addresses the accounting by entities in the film production and distribution industry for certain compensation and other costs incurred to develop and market a film. Those costs include participation and ex…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a5821699a3d0f8d5b13dcd0f99d97c3e153fc6f3d6c9064bbaf53e078f91e41c","downloaded_from":"2026-09-10T01:10:05.518Z","last_downloaded_at":"2026-09-10T01:10:05.518Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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timestamps","source_key":"1943274/2147479119","source_sha256":"d0555b92c41c426dedb4c70c920b96f7c2ee39c398d50b1b3e9e31731da220d5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aef8380efb8ec225d56c869ed9a970cdfdba9c45f7c06a2e07f1747bd1ff3712","downloaded_from":"2026-09-10T01:10:05.518Z","last_downloaded_at":"2026-09-10T01:10:05.518Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479119","source_sha256":"d0555b92c41c426dedb4c70c920b96f7c2ee39c398d50b1b3e9e31731da220d5"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"720-926-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-CA6C9A61-7443-4351-BA4C-77AB8F838735.ditamap\" class=\"ditamap\">926-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 926-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3110860b957ab02fede74abba93f95a65d7b4bab18d10f02df8975516760eb7c","downloaded_from":"2026-09-10T01:10:07.999Z","last_downloaded_at":"2026-09-10T01:10:07.999Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478708","source_sha256":"063aeeb4cbb354261077c67a113b3061d64474c48c55fc1800cb0785a534b033"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:20d66b9c05d8e7e9873cfee20775288ec2c39502d5da776e01440d7bf72b8715","downloaded_from":"2026-09-10T01:10:07.999Z","last_downloaded_at":"2026-09-10T01:10:07.999Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478708","source_sha256":"063aeeb4cbb354261077c67a113b3061d64474c48c55fc1800cb0785a534b033"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4004f605113735972c4cf553a196115a97126dde369d7577124b8fbb3da16a2","downloaded_from":"2026-09-10T01:10:07.999Z","last_downloaded_at":"2026-09-10T01:10:07.999Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478708","source_sha256":"063aeeb4cbb354261077c67a113b3061d64474c48c55fc1800cb0785a534b033"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Overall Deals","paragraphs":[{"citation":"720-926-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E33C7478-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity may enter into an <a href=\"/glossary/o/#overall-deal\" class=\"term\" title=\"An arrangement in which an entity compensates a producer or other creative individual for the exclusive or preferential use of that party's creative services.\"><span>overall deal</span></a> arrangement. </span></span><span class=\"sfragment\" id=\"sfr_E33C763B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> An entity shall charge the costs of overall deals that cannot be identified with specific projects to expense as they are incurred over the related time period. </span></span></div></div>","snippet":"An entity may enter into an overall deal arrangement. An entity shall charge the costs of overall deals that cannot be identified with specific projects to expense as they are incurred over the related time period.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0594e1111310660d531277951711a67ad21d097eb980a4e0d404e54fe094644","downloaded_from":"2026-09-10T01:10:15.540Z","last_downloaded_at":"2026-09-10T01:10:15.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478210","source_sha256":"188fac3c2f5e06dc475639c85cbb486a441b45c4735f44b23117b8e253855022"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d61a1b09c6fe53dea369a74a9de81106e4a012a43df63d972c6c2d7f2bb7c58a","downloaded_from":"2026-09-10T01:10:15.540Z","last_downloaded_at":"2026-09-10T01:10:15.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478210","source_sha256":"188fac3c2f5e06dc475639c85cbb486a441b45c4735f44b23117b8e253855022"}},{"block":null,"heading":"Exploitation Costs","paragraphs":[{"citation":"720-926-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E33C7832-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity shall account for advertising costs in accordance with the provisions of Subtopic <a altsource=\"GUID-3B284602-01F1-41D9-9E56-2A6F7BDBCF52.ditamap\" class=\"ditamap\">720-35</a>. </span></span></div></div>","snippet":"An entity shall account for advertising costs in accordance with the provisions of Subtopic 720-35.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5aa4fbef6f8de8a78cc0fef8b6e890d454641341c5d8d92eb71b490b1ffbc120","downloaded_from":"2026-09-10T01:10:15.540Z","last_downloaded_at":"2026-09-10T01:10:15.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478210","source_sha256":"188fac3c2f5e06dc475639c85cbb486a441b45c4735f44b23117b8e253855022"}},{"citation":"720-926-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E33C793D-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">All other <a href=\"/glossary/e/#exploitation-costs\" class=\"term\" title=\"All direct costs (including marketing, advertising, publicity, promotion, and other distribution expenses) incurred in connection with the distribution of a film.\"><span>exploitation costs</span></a>, including marketing costs, shall be expensed as incurred. </span></span></div></div>","snippet":"All other exploitation costs, including marketing costs, shall be expensed as incurred.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78f4685fc5c7dbe3ed5b832a6c2a519fe3bb0667f2f96350e9b18159bdfe425d","downloaded_from":"2026-09-10T01:10:15.540Z","last_downloaded_at":"2026-09-10T01:10:15.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478210","source_sha256":"188fac3c2f5e06dc475639c85cbb486a441b45c4735f44b23117b8e253855022"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4504ac05dc6bc9b98a7d922fd1489ac7d5fbd5d3f8ab35788a5aa2e2b16b3c3a","downloaded_from":"2026-09-10T01:10:15.540Z","last_downloaded_at":"2026-09-10T01:10:15.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478210","source_sha256":"188fac3c2f5e06dc475639c85cbb486a441b45c4735f44b23117b8e253855022"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70ab8c5a43097294904fc4c96ee4bd6aa56d61d6eeaa51983c0166c96b75d5b3","downloaded_from":"2026-09-10T01:10:15.540Z","last_downloaded_at":"2026-09-10T01:10:15.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478210","source_sha256":"188fac3c2f5e06dc475639c85cbb486a441b45c4735f44b23117b8e253855022"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Exploitation Costs","paragraphs":[{"citation":"720-926-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E34607BA-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity shall disclose its methods of accounting for <a href=\"/glossary/e/#exploitation-costs\" class=\"term\" title=\"All direct costs (including marketing, advertising, publicity, promotion, and other distribution expenses) incurred in connection with the distribution of a film.\"><span>exploitation costs</span></a>. </span></span></div></div>","snippet":"An entity shall disclose its methods of accounting for exploitation costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e1efcba2f4c21633726d5b6bfb81f3d84cb55391a7dc8c289b7627e34456d955","downloaded_from":"2026-09-10T01:10:17.987Z","last_downloaded_at":"2026-09-10T01:10:17.987Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478441","source_sha256":"2974670551bacd1a50641d1c39c39d5f362a2f9ab334491784f051df0a0dbf73"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:927b5ee5d178cad28b48a63b98e26304b099df6f0f8de57020e00494a4071c10","downloaded_from":"2026-09-10T01:10:17.987Z","last_downloaded_at":"2026-09-10T01:10:17.987Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478441","source_sha256":"2974670551bacd1a50641d1c39c39d5f362a2f9ab334491784f051df0a0dbf73"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e8582e2860b7e0132cf0bb18d8f852910e5984839c224489b956b2a0562650d7","downloaded_from":"2026-09-10T01:10:17.987Z","last_downloaded_at":"2026-09-10T01:10:17.987Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478441","source_sha256":"2974670551bacd1a50641d1c39c39d5f362a2f9ab334491784f051df0a0dbf73"}}],"enrichment":{"summary":"This Subtopic governs how film production and distribution entities account for certain costs incurred to develop and market a film, including overall deal costs and exploitation costs. Costs of overall deals that cannot be identified with specific projects are charged to expense as incurred over the related time period (720-926-25-1), advertising costs follow Subtopic 720-35 (720-926-25-2), and all other exploitation costs, including marketing costs, are expensed as incurred (720-926-25-3).","key_points":["The Subtopic covers compensation and other costs incurred to develop and market a film, including participation costs and exploitation costs (720-926-05-1).","Scope follows the Entertainment—Films Overall Subtopic scope in Section 926-10-15 (720-926-15-1).","Costs of overall deal arrangements that cannot be identified with specific projects are expensed as incurred over the related time period (720-926-25-1).","Advertising costs are accounted for under Subtopic 720-35 (720-926-25-2).","All other exploitation costs, including marketing costs, are expensed as incurred (720-926-25-3).","An entity must disclose its methods of accounting for exploitation costs (720-926-50-1)."],"categories":["Recognition","Disclosure","Industry-specific"],"audience_level":"intermediate","student_note":"The key takeaway is that film marketing and other exploitation costs are period expenses, not capitalized film costs — a common error is assuming launch advertising can be deferred and matched against future film revenue. Note advertising is carved out to Subtopic 720-35's rules rather than governed here.","related_topics":["926-10","926-20","720-35","926-330"],"key_concepts":["exploitation costs","overall deal arrangements","participation costs","advertising costs","marketing costs","expense as incurred","film production and distribution"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:971ba8cd810e93494b1332662bdbe14307a68c1955e9db208e9b1d6ae9c94d79","downloaded_from":"2026-09-10T01:10:05.518Z","last_downloaded_at":"2026-09-10T01:10:20.638Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"705-926","title":"Entertainment—Films","topic_title":"Cost of Sales and Services","score":0.8729,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4a67521257f69ec48ff19b2273bf29d5deb9002879b74840c952485d04dd1464","downloaded_from":"2026-09-10T00:56:26.941Z","last_downloaded_at":"2026-09-10T00:56:38.121Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-926","title":"Entertainment—Films","topic_title":"Interest","score":0.8494,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7426fce1172f3ad7db1aaec73a8cdfa141127f179af034d5a0e553919280ad35","downloaded_from":"2026-09-10T01:50:45.748Z","last_downloaded_at":"2026-09-10T01:50:51.672Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"926-10","title":"Overall","topic_title":"Entertainment—Films","score":0.8316,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:576e71ca637f58adea549a5ccbec67e3185415e74cad42b64bd4a5961d4ff7ec","downloaded_from":"2026-09-10T02:11:25.730Z","last_downloaded_at":"2026-09-10T02:11:34.569Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"230-926","title":"Entertainment—Films","topic_title":"Statement of Cash Flows","score":0.8072,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b901b29819aae0456d846f5031618c340a4b3f576b024c8593976f780438fc90","downloaded_from":"2026-09-09T23:12:42.609Z","last_downloaded_at":"2026-09-09T23:12:53.235Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"705-985","title":"Software","topic_title":"Cost of Sales and Services","score":0.7349,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4887daf5683f40b04e01d0e80e13ef75a52e931341ddb6af5c4da013749fab4","downloaded_from":"2026-09-10T00:56:55.035Z","last_downloaded_at":"2026-09-10T00:57:08.857Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"330-926","title":"Entertainment—Films","topic_title":"Inventory","score":0.7335,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6cbfa29ccc922e1feda7e95febf0a6bb1399b2442302a5604079180c5cb2f4ea","downloaded_from":"2026-09-09T23:52:47.274Z","last_downloaded_at":"2026-09-09T23:52:53.935Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"720-924","title":"Entertainment—Casinos","topic_title":"Other 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