{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/926/20/#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":"926","topic_title":"Entertainment—Films","subtopic":"926-20","subtopic_title":"Other Assets—Film Costs","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Film Costs Capitalization","paragraphs":[{"citation":"926-20-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E040CF89-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity shall report <a href=\"/glossary/f/#film-costs\" class=\"term\" title=\"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.\"><span>film costs</span></a> as a separate asset on its balance sheet. </span></span></div></div>","snippet":"An entity shall report film costs as a separate asset on its balance sheet.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:da7fcaf2c24be477ec582638666ad8bf76a72c5a5d8d21e3680c41f875c16a9a","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:84ffdadffa733520b0e89f1614ae8449370435f1916832df03a953ca82a6ff34","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}},{"block":null,"heading":"Production Overhead","paragraphs":[{"citation":"926-20-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E040D0BB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Production overhead is a component of film costs. It includes allocable costs of individuals or departments with exclusive or significant responsibility for the production of <a href=\"/glossary/f/#films\" class=\"term\" title=\"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.\"><span>films</span></a>. Production overhead shall not include administrative and general expenses, the costs of certain overall deals, as discussed in paragraph <a href=\"/asc/926/20/#926-20-25-4\" class=\"xref\">926-20-25-4</a>, or charges for losses on properties sold or abandoned, as discussed in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/926/20/#926-20-40-1\" class=\"xref\">926-20-40-1 through 40-3</a></div>. </span></span></div></div>","snippet":"Production overhead is a component of film costs. It includes allocable costs of individuals or departments with exclusive or significant responsibility for the production of films. Production overhead shall not include …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bd24034389394ad5187ba35132fceb7b2a291543d4e3b0dbe8f557332240eabb","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b93534b7654ed933a7b1094e8920dd327cd65629b79a65642d3b06453c7da1e5","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}},{"block":null,"heading":"Overall Deals","paragraphs":[{"citation":"926-20-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E040D1BC-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity may enter into an arrangement known as an <a href=\"/glossary/o/#overall-deal\" class=\"term\" title=\"An arrangement in which an entity compensates a producer or other creative individual for the exclusive or preferential use of that party's creative services.\"><span>overall deal</span></a>. </span></span></div></div>","snippet":"An entity may enter into an arrangement known as an overall deal.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4da7078947a3e7822b6ad0645c2b1e099ea3921b4ada995b3bd1eb9450d690e","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}},{"citation":"926-20-25-4","para":"25-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E040D2AB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity shall record a reasonable proportion of costs of overall deals as specific project film costs to the extent those costs are directly related to the acquisition, adaptation, or development of specific projects. If related to properties as discussed in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/926/20/#926-20-40-1\" class=\"xref\">926-20-40-1 through 40-3</a></div>, an entity shall include such amounts in the cost of properties subject to the periodic review. An entity shall not allocate to specific project film costs amounts that it had previously expensed. </span></span></div></div>","snippet":"An entity shall record a reasonable proportion of costs of overall deals as specific project film costs to the extent those costs are directly related to the acquisition, adaptation, or development of specific projects. …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a2a3b4df24e156217ca4771784956f27aff89da500c18119482e1eece6af2ad3","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:86ed34d57ff5f137ecf268497c8067ac69a7cf77361962e4676ed0061a353ff9","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}},{"block":null,"heading":"Rights to Film Properties","paragraphs":[{"citation":"926-20-25-5","para":"25-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E040D39F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Film costs ordinarily include expenditures for properties (such as film rights to books, stage plays, or original screenplays) that generally must be adapted to serve as the basis for the production of a particular film. An entity will add the cost of adaptation or development to the cost of the particular property. </span></span></div></div>","snippet":"Film costs ordinarily include expenditures for properties (such as film rights to books, stage plays, or original screenplays) that generally must be adapted to serve as the basis for the production of a particular film.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ba2430ef0e42995de8f5b82811cd6b3ef6ff5e70c5c6a13191398cb9f8204a0","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}},{"citation":"926-20-25-6","para":"25-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2019-02/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2019-02</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2019-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65f008a18f6588bdcd84ae0f41c29cda24e149d660844bdf6a99cef01188f278","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}},{"citation":"926-20-25-7","para":"25-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2019-02/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2019-02</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2019-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7249f70a24ac5fb7d6bf4e2247b1a590e10a309f5156f517107aaed74c047e53","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e7f7487e77065c247f7a85456d90d0ee60c1b334683f40e3741c5430e8f2483","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}},{"block":null,"heading":"Significant Changes to a Film","paragraphs":[{"citation":"926-20-25-8","para":"25-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E040D8F8-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The costs incurred for <a href=\"/glossary/s/#significant-changes-to-a-film\" class=\"term\" title=\"Changes that are additive to a film; that is, the creation of new or additional content after the film is initially available to the customer. For example, reshooting a scene or creating additional special effects are significant changes.\"><span>significant changes to a film</span></a> shall be added to film costs and subsequently charged to expense when an entity recognizes the related revenue. </span></span></div></div>","snippet":"The costs incurred for significant changes to a film shall be added to film costs and subsequently charged to expense when an entity recognizes the related revenue.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25c91cfab5d51702ec724f2416171d898305d27c1d1842430b5e66f5804e221c","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}},{"citation":"926-20-25-9","para":"25-9","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E040D9C4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Mere insertion or addition of preexisting film footage, addition of dubbing or subtitles (which by definition is done to existing footage), removal of offensive language, reformatting of a film to fit a broadcaster's screen dimensions, and adjustments to allow for the insertion of commercials are all examples of changes to a film that are not significant. </span></span></div></div>","snippet":"Mere insertion or addition of preexisting film footage, addition of dubbing or subtitles (which by definition is done to existing footage), removal of offensive language, reformatting of a film to fit a broadcaster's scr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6d1cd071df648d0a0448c855c6cab283002fb2ad33d2d644e7ff2f03e804b311","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:61b051edf910a017921287178198f84a7c75b9ee393bfe377d998050685fddf3","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2e3e4ace7c7ce04b0abcdba900029c581a41eb724128f8cf46c07d1c6e7645c","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2e3e4ace7c7ce04b0abcdba900029c581a41eb724128f8cf46c07d1c6e7645c","downloaded_from":"2026-09-10T02:11:48.859Z","last_downloaded_at":"2026-09-10T02:11:48.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483149","source_sha256":"9d716cd15eb7605d1f15c93e581f66b4c982668354d9313c37ad6bf4c805d3d3"}}