{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/835/922/","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":"835-922","topic":"835","title":"Entertainment—Cable Television","area":"Broad Transactions","paragraphs":4,"summary":"This Subtopic tells cable television entities how much interest cost to capitalize while a cable system is under construction during the \"prematurity period.\" Interest is capitalized under Topic 835 by applying the capitalization rate from 835-20-30-3 through 30-4 to the average qualifying assets, capped at total interest incurred for that system in the period. Because part of the system is already in service earning revenue, only the accumulated expenditures exceeding the fraction in 922-360-35-3 of total estimated system cost qualify.","concepts":["capitalized interest","prematurity period","qualifying assets","interest capitalization rate","cable television system","assets completed in parts","accumulated expenditures"],"categories":["Initial measurement","Inventory and PP&E","Industry-specific"],"level":"intermediate","topic_title":"Interest","sections":[{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"835-922-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance on the accounting for interest costs incurred by an entity in the cable television industry during the period of construction of the cable system.</div></div>","snippet":"This Subtopic provides guidance on the accounting for interest costs incurred by an entity in the cable television industry during the period of construction of the cable system.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b0dd684a663729b3acaae4134f97e3b6da194664b30a10b481ed92c3ce4c28a","downloaded_from":"2026-09-10T01:50:34.120Z","last_downloaded_at":"2026-09-10T01:50:34.120Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-60168DF9-0613-4AF1-926B-DD57223B8821.ditamap\" class=\"ditamap\">922-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 922-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a10699d3df21282fb63182da39ee9a972349d90c20555d0a8b78d794f927da98","downloaded_from":"2026-09-10T01:50:35.976Z","last_downloaded_at":"2026-09-10T01:50:35.976Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478825","source_sha256":"3c303c9a6e843d1dc0e8338ddca5534b6b48943e8f364ada986a97b6cce5666b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bfa5f2b2b93d05c9fa4b10a6c6742e3262fabb308bd4d4a7098d5379356cca6d","downloaded_from":"2026-09-10T01:50:35.976Z","last_downloaded_at":"2026-09-10T01:50:35.976Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478825","source_sha256":"3c303c9a6e843d1dc0e8338ddca5534b6b48943e8f364ada986a97b6cce5666b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f09fecbe8dc51e8c3669fbfb0c4cde98b02673b9c8c831e3cfcd4b321e0a393","downloaded_from":"2026-09-10T01:50:35.976Z","last_downloaded_at":"2026-09-10T01:50:35.976Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478825","source_sha256":"3c303c9a6e843d1dc0e8338ddca5534b6b48943e8f364ada986a97b6cce5666b"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Prematurity Period—Interest Cost Capitalization","paragraphs":[{"citation":"835-922-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_DDF19C9B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amount of interest cost that is capitalized during the <a href=\"/glossary/p/#prematurity-period\" class=\"term\" title=\"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.\"><span>prematurity period</span></a> shall be determined in accordance with Topic <a altsource=\"GUID-AC1D0F5C-2199-496C-9FF0-FAE561FCBAAA.ditamap\" class=\"ditamap\">835</a> by applying an interest capitalization rate determined in accordance with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/835/20/#835-20-30-3\" class=\"xref\">835-20-30-3 through 30-4</a></div> to the average amount of qualifying assets for the system during the period. Qualifying assets shall be determined in accordance with the guidance in paragraphs <a href=\"/asc/835/20/#835-20-30-5\" class=\"xref\">835-20-30-5</a> and <a href=\"/asc/835/20/#835-20-25-5\" class=\"xref\">835-20-25-5</a>. The amount of interest cost capitalized shall not exceed the total amount of interest cost incurred by the cable television system in that period. </span></span> <span class=\"sfragment\" id=\"sfr_DDF19E43-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">During the prematurity period, a portion of the system is in use in the earnings activity of the entity and is not eligible for interest capitalization. The portion of the cost of the system that represents a qualifying asset is the amount of accumulated expenditures in excess of the fraction specified in paragraph <a href=\"/asc/360/922/#360-922-35-3\" class=\"xref\">922-360-35-3</a> of the total estimated cost of the system at the end of the prematurity period. </span></span> </div> </div>","snippet":"The amount of interest cost that is capitalized during the prematurity period shall be determined in accordance with Topic 835 by applying an interest capitalization rate determined in accordance with paragraphs 835-20-3…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85a0952ed2b1ec2f77aa199b4077ff6be600e65dfc10d89fd8a627f0ffffe2d5","downloaded_from":"2026-09-10T01:50:42.248Z","last_downloaded_at":"2026-09-10T01:50:42.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477501","source_sha256":"84ee1baf63b4a0c72d9c86783da0a7e6c8672c50ffe3cbbbede807646f80d6ff"}},{"citation":"835-922-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_DDF19F9A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/835/20/#835-20-25-5\" class=\"xref\">835-20-25-5</a> states that for assets completed in parts, and where each part is capable of being used independently while work is continuing on other parts, interest capitalization shall stop on each part when it is substantially complete and ready for use. Therefore, that guidance prohibits capitalization of interest cost on the portion of the cable television system that is substantially complete and ready for its intended use. Accordingly, this Topic clarifies that all interest cost incurred during the prematurity period is not necessarily eligible to be capitalized. </span></span> </div> </div>","snippet":"Paragraph 835-20-25-5 states that for assets completed in parts, and where each part is capable of being used independently while work is continuing on other parts, interest capitalization shall stop on each part when it…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:820daa6a5a2ee83b7b4690a73d948db21d615640e8fd39c9c74cf692b940b795","downloaded_from":"2026-09-10T01:50:42.248Z","last_downloaded_at":"2026-09-10T01:50:42.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477501","source_sha256":"84ee1baf63b4a0c72d9c86783da0a7e6c8672c50ffe3cbbbede807646f80d6ff"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ccd7c008c4e5a5ae1bb049a802e85b1ec06e32436d09751e7495a8988ebf6742","downloaded_from":"2026-09-10T01:50:42.248Z","last_downloaded_at":"2026-09-10T01:50:42.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477501","source_sha256":"84ee1baf63b4a0c72d9c86783da0a7e6c8672c50ffe3cbbbede807646f80d6ff"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:393b095477f55a50168846f286a502836ef526cd3677c91418d9365f14cd7f68","downloaded_from":"2026-09-10T01:50:42.248Z","last_downloaded_at":"2026-09-10T01:50:42.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477501","source_sha256":"84ee1baf63b4a0c72d9c86783da0a7e6c8672c50ffe3cbbbede807646f80d6ff"}}],"enrichment":{"summary":"This Subtopic tells cable television entities how much interest cost to capitalize while a cable system is under construction during the \"prematurity period.\" Interest is capitalized under Topic 835 by applying the capitalization rate from 835-20-30-3 through 30-4 to the average qualifying assets, capped at total interest incurred for that system in the period. Because part of the system is already in service earning revenue, only the accumulated expenditures exceeding the fraction in 922-360-35-3 of total estimated system cost qualify.","key_points":["Interest capitalized during the prematurity period is computed by applying an interest capitalization rate determined under 835-20-30-3 through 30-4 to the average amount of qualifying assets for the system (835-922-25-1).","The amount of interest capitalized cannot exceed the total interest cost actually incurred by the cable television system in that period (835-922-25-1).","Qualifying assets are determined under 835-20-30-5 and 835-20-25-5; the qualifying portion equals accumulated expenditures in excess of the fraction specified in 922-360-35-3 of the total estimated cost of the system at the end of the prematurity period (835-922-25-1).","The portion of the system already in use in the entity's earnings activity during the prematurity period is not eligible for interest capitalization (835-922-25-1).","Under 835-20-25-5, for assets completed in parts that can be used independently, interest capitalization stops on each part when it is substantially complete and ready for use, so not all interest incurred during the prematurity period is eligible for capitalization (835-922-25-2).","The Subtopic follows the same scope and scope exceptions as Section 922-10-15 (835-922-15-1)."],"categories":["Initial measurement","Inventory and PP&E","Industry-specific"],"audience_level":"intermediate","student_note":"The trap here is assuming all interest incurred during the prematurity period gets capitalized — it does not, because the portion of the cable system already in service is treated as substantially complete and ineligible; only expenditures above the 922-360-35-3 fraction of total estimated cost are qualifying assets.","related_topics":["835-20","922-10","922-360","360"],"key_concepts":["capitalized interest","prematurity period","qualifying assets","interest capitalization rate","cable television system","assets completed in parts","accumulated expenditures"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0cbd6ee6fa4b0a1112a8501aa9a350523656c1456e702d8b16bdd2e4f4fc47c4","downloaded_from":"2026-09-10T01:50:34.120Z","last_downloaded_at":"2026-09-10T01:50:42.248Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"360-922","title":"Entertainment—Cable Television","topic_title":"Property, Plant, and Equipment","score":0.8854,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f90a22eee899b5f4a2075fd9071cd2e018414c2621a3acdf03d92d1b6e81658c","downloaded_from":"2026-09-10T00:08:15.419Z","last_downloaded_at":"2026-09-10T00:08:28.839Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"350-922","title":"Entertainment—Cable Television","topic_title":"Intangibles—Goodwill and Other","score":0.8615,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7622463c6daca652c0ffdc43d9d5d0eb53cda12e9b065d5c2da49f42f45bb7b","downloaded_from":"2026-09-10T00:04:18.369Z","last_downloaded_at":"2026-09-10T00:04:37.790Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"720-922","title":"Entertainment—Cable Television","topic_title":"Other Expenses","score":0.7803,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:347365a7ac762b5fd8dcd424efba87ac20e6f5ee878cca68a36a1100aaf8a5b6","downloaded_from":"2026-09-10T01:09:40.397Z","last_downloaded_at":"2026-09-10T01:09:54.134Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-980","title":"Regulated Operations","topic_title":"Interest","score":0.7299,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f592bb8dd2d14cfc04f3fc43e2f06fcdbc3437b1832b470ef984f0657796cef5","downloaded_from":"2026-09-10T01:51:29.287Z","last_downloaded_at":"2026-09-10T01:51:51.446Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-20","title":"Capitalization of Interest","topic_title":"Interest","score":0.708,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c7f3ce83d0e5c4c5e535ea90a150d0f683867308af915d25522600c6a1ae7e03","downloaded_from":"2026-09-10T01:48:54.719Z","last_downloaded_at":"2026-09-10T01:49:28.506Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"922-10","title":"Overall","topic_title":"Entertainment—Cable 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