# ASC 926-20-05: Entertainment—Films — Other Assets—Film Costs — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 926-20-05: 05 Overview and Background

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##### [926-20-05-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-05-1)

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This Subtopic provides accounting guidance on the capitalization and amortization of the costs incurred by entities in the film production and distribution industry to produce and distribute the [films](https://asc.understandingaccounting.org/glossary/f/#films "Feature films, television specials, television series, or similar products (including animated films and television programming) that are sold, licensed, or exhibited, whether produced on film, video tape, digital, or other video recording format."). Those costs are referred to as [film costs](https://asc.understandingaccounting.org/glossary/f/#film-costs "Film costs include all direct negative costs incurred in the physical production of a film, as well as allocations of production overhead and capitalized interest in accordance with Topic 835. Examples of direct negative costs include costs of story and scenario; compensation of cast, directors, producers, extras, and miscellaneous staff; costs of set construction and operations, wardrobe, and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.").