# ASC 926-20-25: Entertainment—Films — Other Assets—Film Costs — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/926/20/#25-recognition) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:c2e3e4ace7c7ce04b0abcdba900029c581a41eb724128f8cf46c07d1c6e7645c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/926/20/#25-recognition) SEC content: no #### Film Costs Capitalization ##### [926-20-25-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:da7fcaf2c24be477ec582638666ad8bf76a72c5a5d8d21e3680c41f875c16a9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall report [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.") as a separate asset on its balance sheet. #### Production Overhead ##### [926-20-25-2](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:bd24034389394ad5187ba35132fceb7b2a291543d4e3b0dbe8f557332240eabb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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."). Production overhead shall not include administrative and general expenses, the costs of certain overall deals, as discussed in paragraph [926-20-25-4](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-4), or charges for losses on properties sold or abandoned, as discussed in paragraphs [926-20-40-1 through 40-3](https://asc.understandingaccounting.org/asc/926/20/#926-20-40-1) . #### Overall Deals ##### [926-20-25-3](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:c4da7078947a3e7822b6ad0645c2b1e099ea3921b4ada995b3bd1eb9450d690e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may enter into an arrangement known as an [overall deal](https://asc.understandingaccounting.org/glossary/o/#overall-deal "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."). ##### [926-20-25-4](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:a2a3b4df24e156217ca4771784956f27aff89da500c18119482e1eece6af2ad3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [926-20-40-1 through 40-3](https://asc.understandingaccounting.org/asc/926/20/#926-20-40-1) , 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. #### Rights to Film Properties ##### [926-20-25-5](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:9ba2430ef0e42995de8f5b82811cd6b3ef6ff5e70c5c6a13191398cb9f8204a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [926-20-25-6](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:65f008a18f6588bdcd84ae0f41c29cda24e149d660844bdf6a99cef01188f278 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2019-02](https://asc.understandingaccounting.org/updates/asu-2019-02/). ##### [926-20-25-7](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:7249f70a24ac5fb7d6bf4e2247b1a590e10a309f5156f517107aaed74c047e53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2019-02](https://asc.understandingaccounting.org/updates/asu-2019-02/). #### Significant Changes to a Film ##### [926-20-25-8](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:25c91cfab5d51702ec724f2416171d898305d27c1d1842430b5e66f5804e221c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The costs incurred for [significant changes to a film](https://asc.understandingaccounting.org/glossary/s/#significant-changes-to-a-film "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.") shall be added to film costs and subsequently charged to expense when an entity recognizes the related revenue. ##### [926-20-25-9](https://asc.understandingaccounting.org/asc/926/20/#926-20-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:48.859Z to 2026-09-10T02:11:48.859Z Record version: sha256:6d1cd071df648d0a0448c855c6cab283002fb2ad33d2d644e7ff2f03e804b311 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.