ASC 835-926
Entertainment—Films
835 Interest
Source downloaded: .Record version c432d18bddb6. Effective date must be checked in the source.
This short subtopic tells film producers and distributors how to handle interest costs incurred while a film is being produced. The rule is simple: interest costs related to film production are accounted for under the general interest-capitalization guidance in Subtopic 835-20 (835-926-25-1). Its scope follows the Entertainment—Films overall scope in Section 926-10-15.
Key points (4)
- The subtopic addresses accounting and reporting by entities in the film production and distribution industry for interest costs incurred in producing a film (835-926-05-1).
- Scope is the same as the Entertainment—Films Overall Subtopic, Section 926-10-15 (835-926-15-1).
- Interest costs related to the production of a film must be accounted for in accordance with Subtopic 835-20, Interest—Capitalization of Interest (835-926-25-1).
- The subtopic itself creates no film-specific measurement rule; it simply directs the entity to the general capitalization-of-interest model, so a film in production is treated as a qualifying asset under that model.
For students. This is a pure cross-reference subtopic: the exam point is that film production interest is capitalized under 835-20 like any other qualifying asset, not expensed as incurred. Students often assume the film industry has a special interest rule; it does not.
Machine-generated study aid for ASC 835-926. Check the source paragraphs below.
835-926-05Overview and Background
Source downloaded: .Record version 5f7ebff8369b. Effective date must be checked in the source.
835-926-15Scope and Scope Exceptions
Source downloaded: .Record version 2455d8f005e6. Effective date must be checked in the source.
Overall Guidance
835-926-25Recognition
Source downloaded: .Record version 3d7d40c8cf1d. Effective date must be checked in the source.