{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/720/928/#25-recognition","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.","topic":"720","topic_title":"Other Expenses","subtopic":"720-928","subtopic_title":"Entertainment—Music","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Licensor Accounting","paragraphs":[{"citation":"720-928-25-1","para":"25-1","html":"The amount of royalties earned by artists, as adjusted for anticipated returns, shall be charged to expense of the period in which the sale of the record takes place. Advance royalties shall be charged to expense as subsequent royalties are earned by the artist. Any portion of such advances that subsequently appear not to be fully recoverable from future royalties to be earned by the artist shall be charged to expense during the period in which the loss becomes evident. The portion of the record master cost borne by the record company not reported as an asset in accordance with paragraph 928-340-25-2 shall be charged to expense. As described in paragraph 928-340-35-3, if all or a portion of a minimum guarantee paid in advance by a licensee subsequently appears not to be recoverable through future use of the rights obtained under the license, the nonrecoverable portion shall be charged to expense.