ASC

ASC 924-10

Overall

924 Entertainment—Casinos

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In brief

IntroductoryIndustry-specificPresentationDisclosureRevenue

ASC 924-10 is the Overall subtopic of the Entertainment—Casinos Topic, which collects the accounting and reporting standards unique to the gaming industry. It provides incremental, industry-specific guidance on gaming chips, promotional allowances, base jackpots, slot machines, income taxes, and geographic segment disclosure. Casinos must still apply all other generally applicable GAAP; this Topic only supplements it.

Key points (5)
  • The Casinos Topic contains the Subtopics Overall, Segment Reporting, Liabilities, Other Expenses, Income Taxes, and Derivatives and Hedging (924-10-05-1); the Revenue Recognition subtopic listed at 05-1(d) was superseded by ASU 2014-09.
  • The Topic presents accounting and reporting standards unique to gaming entities, specifically addressing gaming chips, promotional allowances, base jackpots, slot machines, and income taxes, plus disclosure of geographic segments (924-10-05-2).
  • Guidance in these Subtopics is incremental only—entities within scope must also comply with all applicable guidance not included in this Topic (924-10-15-1).
  • Scope covers all entities that operate as casinos and the casino operations of other entities (924-10-15-2).
  • Background: legalized gaming includes riverboat, Native American, and internet gaming and sports betting, and casinos often operate as large-scale destination resorts deriving substantial revenue from ancillary hotel, food and beverage, and retail operations (924-10-05-3 through 05-4).

For students. This Overall subtopic is essentially a roadmap and scope statement—no measurement rules live here. The common misunderstanding is thinking industry topics displace general GAAP; 924-10-15-1 makes clear the guidance is only incremental, and note that the casino revenue recognition subtopic was superseded by ASC 606.

casino operationsgaming chipspromotional allowancesbase jackpotsslot machinesgeographic segment disclosureincremental industry guidanceancillary resort revenues

Machine-generated study aid for ASC 924-10. Check the source paragraphs below.

924-10-00Status

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924-10-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
924-10-05-1AmendedAccounting Standards Update No. 2016-2012/21/2016
924-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014

924-10-05Overview and Background

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924-10-05-1
The Entertainment—Casinos Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Segment Reporting
  3. c
    Liabilities
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
  5. e
    Other Expenses
  6. f
    Income Taxes
  7. g
    Derivatives and Hedging.
924-10-05-2
The Entertainment—Casinos Topic presents the accounting and reporting standards that are unique to entities in the gaming industry. Specific guidance is provided on accounting for all of the following:
  1. a
    Gaming chips
  2. b
    Promotional allowances
  3. c
    Base jackpots
  4. d
    Slot machines
  5. e
    Income taxes.
Guidance also is provided for the disclosure of geographic segments, if any. General background information about the gaming industry follows.
924-10-05-3
Most states now have at least one form of legalized gambling. These include on-track and off-track betting on horse racing, on-track betting on dog racing, state lotteries, and jai alai. Casino gambling is legal in many areas of the world. Some of the casinos in other parts of the world are owned by publicly held entities based in the United States. In addition, legalized gaming throughout the United States has taken on the additional forms of Riverboat Gaming and Native American Gaming. With the expanded use of the internet for conducting business transactions, internet gaming entities have been formed in various parts of the world to provide online gaming and sports betting over the internet.
924-10-05-4
With the proliferation of gaming throughout the United States and the world, gaming facilities, in certain instances, have become large-scale destination resorts. Entities have invested significant amounts of capital in the physical plants of these facilities and derive a large portion of their revenues from ancillary sources including hotel, food and beverage, and retail operations.

924-10-15Scope and Scope Exceptions

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Overall Guidance

924-10-15-1
The Subtopics within the Entertainment—Casinos Topic only provide incremental industry-specific guidance for entities operating as casinos. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic.

Entities

924-10-15-2
The Entertainment—Casinos Topic provides guidance for all entities that operate as casinos and for the casino operations of other entities.

924-10-S45Other Presentation MattersSEC

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Income Statement Presentation of Expenses

924-10-S45-1
See paragraph 924-10-S99-1, SAB Topic 11.L, for SEC Staff views on the income statement presentation of expenses attributable to casino-hotel activities.

924-10-S99SEC MaterialsSEC

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SEC Staff Guidance

924-10-S99-1
The following is the text of SAB Topic 11.L, Income Statement Presentation Of Casino-Hotels.
  • Facts: Registrants having casino-hotel operations present separately within the income statement amounts of revenue attributable to casino, hotel and restaurant operations, respectively.
  • Question: What is the appropriate income statement presentation of expenses attributable to casino-hotel activities?
  • Interpretive Response: The staff believes that the expenses attributable to each of the separate revenue producing activities of casino, hotel and restaurant operations should be separately presented on the face of the income statement. Such a presentation is consistent with the general reporting format for income statement presentation under Regulation S-X (Rules 5-03.1 and 5-03.2) which requires presentation of amounts of revenues and related costs and expenses applicable to major revenue providing activities. This detailed presentation affords an analysis of the relative contribution to operating profits of each of the revenue producing activities of a typical casino-hotel operation.

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