{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/926/20/#35-subsequent-measurement","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":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Film Costs Amortization","paragraphs":[{"citation":"926-20-35-1","para":"35-1","html":"
For a film that is predominantly monetized on its own, an entity shall amortize film costs using the individual-film-forecast-computation method, which amortizes such costs in the same ratio that current period actual revenue (numerator) bears to estimated remaining unrecognized ultimate revenue as of the beginning of the current fiscal year (denominator). In this way, in the absence of changes in estimates, film costs are amortized in a manner that yields a constant rate of profit over the ultimate period, as described in paragraph 926-20-35-5(a), for each film before exploitation costs, manufacturing costs, and other period expenses. Unamortized film costs as of the beginning of the current fiscal year are multiplied by the individual-film-forecast-computation method fraction. That is, an entity shall begin amortization of capitalized film costs when a film is released and it begins to recognize revenue from that film. For more information, see Example 1 (paragraph 926-20-55-1). For a film that is predominantly monetized on its own but also monetized with other films and/or license agreements, an entity shall make a reasonably reliable estimate of the value attributable to the film's exploitation while monetized with other films and/or license agreements for inclusion in its individual-film-forecast computation. For purposes of applying the individual-film-forecast-computation method to episodic television series, multiple seasons of an episodic television series are considered to be a single product. For more information, see Example 4 (paragraph 926-20-55-12).
","snippet":"For a film that is predominantly monetized on its own, an entity shall amortize film costs using the individual-film-forecast-computation method, which amortizes such costs in the same ratio that current period actual re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8ec6a3808a4c3928c14a0f2572240ce062741ebdc6727df16296df792688d94","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-2","para":"35-2","html":"
For a film that is in a film group, an entity shall make a reasonably reliable estimate of the portion of unamortized film costs that is representative of the use of the film. An entity shall expense such amounts as it exhibits or exploits the film. (For example, an entity with a direct-to-consumer streaming platform that does not accept advertising on its platform may produce a film and only show it on its platform. In this example, the entity receives subscription fees from third parties that are not directly related to a particular film.)
","snippet":"For a film that is in a film group, an entity shall make a reasonably reliable estimate of the portion of unamortized film costs that is representative of the use of the film. An entity shall expense such amounts as it e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:799edbbd0a16896099be8ec688f2d7c594892841305128aefc4199042ca08e4c","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-3","para":"35-3","html":"
As a result of uncertainties in the estimating process, actual results may vary from estimates. An entity shall review and revise estimates of ultimate revenue as of each reporting date to reflect the most current available information. If estimates are revised, an entity shall determine a new denominator that includes only the ultimate revenue from the beginning of the fiscal year of change (that is, ultimate revenue changes are treated prospectively as of the beginning of the fiscal year of change). The numerator (revenue for the current fiscal year) is unaffected by the change. An entity shall apply the revised fraction to the net carrying amount of unamortized film costs as of the beginning of the fiscal year, and the difference between expenses determined using the new estimates and any amounts previously expensed during that fiscal year shall be charged or credited to the income statement in the period (for example, the quarter) during which the estimates are revised. For more information, see Example 2 (paragraph 926-20-55-5).
","snippet":"As a result of uncertainties in the estimating process, actual results may vary from estimates. An entity shall review and revise estimates of ultimate revenue as of each reporting date to reflect the most current availa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:422a26623f250d9af01bed93c2beaa3c64389abea4bdc89f9b9ce50692477e2e","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-3A","para":"35-3A","html":"
An entity shall review and revise estimates of the remaining use of the film for film costs amortized in accordance with paragraph 926-20-35-2 as of each reporting date to reflect the most current available information. Changes to estimates of the remaining use of a film shall be accounted for prospectively.
","snippet":"An entity shall review and revise estimates of the remaining use of the film for film costs amortized in accordance with paragraph 926-20-35-2 as of each reporting date to reflect the most current available information. …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83bab545952c60481d0dba59e16dd00a9746b95dbb1459aa0b20f25ebce13316","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0258566dacfaab702577bdb050ca757c7bd6f6baf7d0bf6ca8983c03f2c74822","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"block":null,"heading":"Predominant Monetization Strategy","paragraphs":[{"citation":"926-20-35-3B","para":"35-3B","html":"
An entity shall determine whether a film is part of a film group when capitalization of film costs begins by assessing whether it is expected to be predominantly monetized on its own or predominantly monetized with other films and/or license agreements.
","snippet":"An entity shall determine whether a film is part of a film group when capitalization of film costs begins by assessing whether it is expected to be predominantly monetized on its own or predominantly monetized with other…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8da674273debc7dd15ecc7036745f969a39bc3188bb1b88ecc707b393ed62ed4","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-3C","para":"35-3C","html":"
If there is a significant change to the monetization strategy of a film compared with the monetization strategy determined when capitalization of film costs began, an entity shall reassess the predominant monetization strategy for that film. The reassessment of the predominant monetization strategy shall include an assessment of the monetization strategy throughout the entire life of the film rather than an assessment from the time of the significant change in monetization strategy. Two examples of a significant change to the monetization strategy of a film are adding a previously unplanned significant distribution channel and forgoing a previously planned significant distribution channel. For purposes of determining whether there is a significant change to the monetization strategy, results of the monetization strategy that are different from the expected results shall not be considered a significant change to the monetization strategy.
","snippet":"If there is a significant change to the monetization strategy of a film compared with the monetization strategy determined when capitalization of film costs began, an entity shall reassess the predominant monetization st…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab910e4c910aeb1a0c753f59b90a42a0ea201a4687abb54ccd15555699e16931","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2df5479e4876b8aa72c444c70c9c7bee8fcd4a6bca9a662c20b38bdbbe2610a","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"block":null,"heading":"Ultimate Revenue","paragraphs":[{"citation":"926-20-35-4","para":"35-4","html":"
Ultimate revenue to be included in the denominator of the individual-film-forecast-computation method fraction shall include estimates of revenue that is expected to be recognized by an entity from the exploitation, exhibition, and sale of a film in all markets and territories, subject to the limitations set forth in paragraph 926-20-35-5.
","snippet":"Ultimate revenue to be included in the denominator of the individual-film-forecast-computation method fraction shall include estimates of revenue that is expected to be recognized by an entity from the exploitation, exhi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b0b1fb8ba24914c7b18d6506f35f33c4cd11a7c676bcf1cb8041949a7687b28","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-5","para":"35-5","html":"
Ultimate revenue shall be limited by the following:
  1. a
    For films other than episodic television series, ultimate revenue shall include estimates over a period not to exceed 10 years following the date of the film's initial release. For episodic television series, ultimate revenue shall include estimates of revenue over a period not to exceed 10 years from the date of delivery of the first episode or, if still in production, 5 years from the date of delivery of the most recent episode, if later. For previously released films acquired as part of a film library, ultimate revenue shall include estimates over a period not to exceed 20 years from the date of acquisition. For the purposes of this Topic, an entity shall categorize as part of a film library only those individual films whose initial release dates were at least three years prior to the acquisition date.
  2. b
    Ultimate revenue shall include estimates of revenue from a market or territory only if persuasive evidence exists that such revenue will occur, or if an entity can demonstrate a history of recognizing such revenue in that market or territory. Ultimate revenue shall include estimates of revenue from newly developing territories only if an existing arrangement provides persuasive evidence that an entity will realize such amounts.
  3. c
    Ultimate revenue shall include estimates of revenue from licensing arrangements with third parties to market film-related products only if persuasive evidence exists that such revenue from that arrangement will occur for that particular film (such as a signed contract to receive a nonrefundable minimum guarantee or a nonrefundable advance) or if an entity can demonstrate a history of recognizing such revenue from that form of arrangement.
  4. d
    Ultimate revenue shall include estimates of the portion of the wholesale or retail revenue from an entity's sale of peripheral items (such as toys and apparel) that is attributable to the exploitation of themes, characters, or other contents related to a particular film only if the entity can demonstrate a history of recognizing such revenue from that form of exploitation in similar kinds of films. For example, an entity may conclude that the portion of revenue from the sale of peripheral items that it shall include in ultimate revenue is an estimate of what would be recognized by the entity if rights for such form of exploitation had been granted under licensing arrangements with third parties. Ultimate revenue shall not, however, include estimates of the entire amount of wholesale or retail revenue from an entity's sale of peripheral items.
  5. e
    Ultimate revenue shall not include estimates of revenue from unproven or undeveloped technologies.
  6. f
    Ultimate revenue shall not include estimates of wholesale promotion or advertising reimbursements to be received from third parties. Such amounts shall be offset against exploitation costs.
  7. g
    Ultimate revenue shall not include estimates of amounts related to the sale of film rights for periods after those identified in (a).
","snippet":"Ultimate revenue shall be limited by the following:\n(a) For films other than episodic television series, ultimate revenue shall include estimates over a period not to exceed 10 years following the date of the film's init…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6fa1e0d8615175274651a1d1166077e1594a719a22558f570d2b90234837dc86","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-6","para":"35-6","html":"
An entity shall not discount ultimate revenue to its present value except when a significant financing component is identified (see paragraphs
606-10-32-15 through 32-20
) in a contract in which an entity promises to grant a license within the scope of Topic 606.
","snippet":"An entity shall not discount ultimate revenue to its present value except when a significant financing component is identified (see paragraphs 606-10-32-15 through 32-20) in a contract in which an entity promises to gran…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4fbefeef068b423e68ae60f46e2f561c5eabb7ad4554e8079f7bddb84efa0a3","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-7","para":"35-7","html":"
All foreign currency estimates of future revenues shall be based on current spot rates.
","snippet":"All foreign currency estimates of future revenues shall be based on current spot rates.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0de7249fb47464fa0ca5888ad0345aad7d8376fa43ce137aba543bda2eac6a4","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-8","para":"35-8","html":"
Ultimate revenue shall not include amounts representing projections for future inflation.
","snippet":"Ultimate revenue shall not include amounts representing projections for future inflation.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:51a2247f077d735aba3e50717e89559c165bb708dc2bbb1325643edba0d77bd5","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-9","para":"35-9","html":"
Paragraph superseded by Accounting Standards Update No. 2019-02.
","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:e850eb1285308dfa1ff861a9261ebfacbdc3b87341b1ecff8cffcf784f3aa371","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-10","para":"35-10","html":"
Paragraph superseded by Accounting Standards Update No. 2019-02.
","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:a2013615c212402e043e2ad626807f75bce562ba68195f57ea5e063739998eb8","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-11","para":"35-11","html":"
Paragraph superseded by Accounting Standards Update No. 2019-02.
","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:fde256ffe13b412f9ebc9162746e00fa888e93bd623377d7d5ef881c6f88c56b","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e457e3d2d70c7d59a3cfc974b65d7dc0a0694c9f88ef6421f8d49393cc2ae42e","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"block":null,"heading":"Impairment","paragraphs":[{"citation":"926-20-35-12","para":"35-12","html":"
Unamortized film costs shall be tested for impairment whenever events or changes in circumstances indicate that the fair value of a film predominantly monetized on its own (see paragraph 926-20-35-12A) or a film group (see paragraph 926-20-35-12B) may be less than its unamortized costs.
","snippet":"Unamortized film costs shall be tested for impairment whenever events or changes in circumstances indicate that the fair value of a film predominantly monetized on its own (see paragraph 926-20-35-12A) or a film group (s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c48ed1d859df19172080df62489042f8e00d81accf0a9fed30e2d4a59ded7f48","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-12A","para":"35-12A","html":"
The following are examples of events or changes in circumstances that indicate that an entity shall assess whether the fair value of a film (whether completed or not) is less than its unamortized film costs:
  1. a
    An adverse change in the expected performance of a film prior to release
  2. b
    Actual costs substantially in excess of budgeted costs
  3. c
    Substantial delays in completion or release schedules
  4. d
    Changes in release plans, such as a reduction in the initial release pattern
  5. e
    Insufficient funding or resources to complete the film and to market it effectively
  6. f
    Actual performance subsequent to release failing to meet expectations set before release due to factors such as the following:
    1. 1
      A significant adverse change in technological, regulatory, legal, economic, or social factors that could affect the public's perception of a film or the availability of a film for future showings
    2. 2
      A significant decrease in the amount of ultimate revenue expected to be recognized.
  7. g
    A change in the predominant monetization strategy of a film resulting in the film being predominantly monetized with other films and/or license agreements.
","snippet":"The following are examples of events or changes in circumstances that indicate that an entity shall assess whether the fair value of a film (whether completed or not) is less than its unamortized film costs:\n(a) An adver…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c2f178a0de3c328235f55e03fe3f7cb6121fb4c33297404ea7cf63ecb952d67","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-12B","para":"35-12B","html":"
The following are examples of events or changes in circumstances for a film group that indicate that an entity shall assess whether the fair value of a film group is less than its unamortized film costs:
  1. a
    A significant adverse change in technological, regulatory, legal, economic, or social factors that could affect the fair value of the film group
  2. b
    A significant decrease in the number of subscribers or forecasted subscribers, or the loss of a major distributor
  3. c
    A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection of continuing losses associated with the use or exploitation of a film group.
","snippet":"The following are examples of events or changes in circumstances for a film group that indicate that an entity shall assess whether the fair value of a film group is less than its unamortized film costs:\n(a) A significan…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ce94fcf91672348cfdc1e8284cede6dc7528f8d25ff04947ba62a842174c501","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-13","para":"35-13","html":"
If an event or change in circumstance indicates that an entity shall assess whether the fair value of a film (or film group) is less than its unamortized film costs, the entity shall determine the fair value of the film (or film group) (the determination of which is affected by estimated future exploitation costs still to be incurred) and write off to the income statement the amount by which the unamortized capitalized costs exceed the film's (or film group's) fair value. Exploitation costs incurred after such a write-off shall be accounted for in accordance with the provisions of paragraphs
926-720-25-2 through 25-3
. An entity shall treat the reduced amount of capitalized film costs that have been written down to fair value (subject to paragraph 926-20-35-19 for films in a film group) at the close of an annual fiscal period as the cost for subsequent accounting purposes, and an entity shall not subsequently restore any amounts previously written off.
","snippet":"If an event or change in circumstance indicates that an entity shall assess whether the fair value of a film (or film group) is less than its unamortized film costs, the entity shall determine the fair value of the film …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:76adad3baba7999184727edf129bdbca888272e71582d6eb7fd66761ce463de7","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-14","para":"35-14","html":"
A discounted cash flow model may be used to estimate fair value. If applicable, future cash flows based on the terms of any existing contractual arrangements, including cash flows over existing license periods without consideration of the limitations set forth in paragraph 926-20-35-5, shall be included.
","snippet":"A discounted cash flow model may be used to estimate fair value. If applicable, future cash flows based on the terms of any existing contractual arrangements, including cash flows over existing license periods without co…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dbcdbc64a557e1640e122e524fc0e87893b828525c7a759fddd2e319262c9e80","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-15","para":"35-15","html":"
An entity shall consider the following factors, among others, in estimating future cash inflows for a film:
  1. a
    If previously released, the film's performance in prior markets
  2. b
    The public's perception of the film's story, cast, director, or producer
  3. c
    Historical results of similar films
  4. d
    Historical results of the cast, director, or producer on prior films
  5. e
    Running time of the film.
In determining a film's (or film group's) fair value, it is also necessary to consider those cash outflows necessary to generate the film's (or film group's) cash inflows. Therefore, an entity shall incorporate, if applicable, its estimates of future costs to complete a film, future exploitation and participation costs, or other necessary cash outflows in its determination of fair value when using a discounted cash flow model.
","snippet":"An entity shall consider the following factors, among others, in estimating future cash inflows for a film:\n(a) If previously released, the film's performance in prior markets\n(b) The public's perception of the film's st…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a91baa82fbb81ff8e203a8006b06a3fa152c1377ccf30c7a67681559929b8ec","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-16","para":"35-16","html":"
When using the traditional discounted cash flow approach to estimate the fair value of a film (or film group), the relevant future cash inflows and outflows shall represent the entity's estimate of the most likely cash flows. When determining the fair value of a film (or film group) using the expected cash flow approach, all possible relevant future cash inflows and outflows shall be probability-weighted by period and the estimated mean or average by period shall be used.
","snippet":"When using the traditional discounted cash flow approach to estimate the fair value of a film (or film group), the relevant future cash inflows and outflows shall represent the entity's estimate of the most likely cash f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:76d3950eccc84fd15cf8d4bd0d32721ebecba6a1d61b0db33090e3eb78717273","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-17","para":"35-17","html":"
When determining the fair value of a film (or film group) using a traditional discounted cash flow approach, the discount rate(s) shall not be an entity's incremental borrowing rate(s), liability settlement rate(s), or weighted average cost of capital because those rates typically do not reflect the risks associated with a particular film (or film group). The discount rate(s) shall consider the time value of money and the expectations about possible variations in the amount or timing of the most likely cash flows and an element to reflect the price market participants would seek for bearing the uncertainty inherent in such an asset, as well as other factors, sometimes unidentifiable, including illiquidity and market imperfections. When determining the fair value of a film (or film group) using the expected cash flow approach, the discount rate(s) also would consider the time value of money. Because they are reflected in the expected cash flows, there would be no adjustment for possible variations in the amounts or timing of those cash flows. If not reflected in risk-adjusted expected cash flows, an additional element to reflect the price market participants would seek for bearing the uncertainty inherent in such an asset as well as other factors, sometimes unidentifiable, including illiquidity and market imperfections, shall be added to the discount rate(s).
","snippet":"When determining the fair value of a film (or film group) using a traditional discounted cash flow approach, the discount rate(s) shall not be an entity's incremental borrowing rate(s), liability settlement rate(s), or w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:225aa494bc4aa2fb8c17eb588fd95b3716f7dd17710f93f0f40f3229ed91caaf","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-18","para":"35-18","html":"
Paragraph superseded by Accounting Standards Update No. 2012-07.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2012-07.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f81a34fd8a088b9ff73bb0324d28802edd0c60797901cbaca0d3bd961e92df40","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},{"citation":"926-20-35-19","para":"35-19","html":"
An impairment loss attributable to a film group shall reduce only the carrying amounts of a film or license agreement included in that film group. The loss shall be allocated to the films and license agreements within the film group on a pro rata basis using the relative carrying amounts of those assets. However, if an entity can estimate the fair value of individual films and license agreements in the film group without undue cost and effort, it shall not reduce the carrying amount of those films below their fair value.
","snippet":"An impairment loss attributable to a film group shall reduce only the carrying amounts of a film or license agreement included in that film group. The loss shall be allocated to the films and license agreements within th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:46eeb6873688b2c5fcfde174ae516ea7c7a65aa96659c3f0590c36779d79f4e3","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ad088ecd6cb1e13706dca9550851c960781f95c4637cb51d0cd4ec6f2b6d8d4","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2335f7cdcf82e1ea47a196ef3dafc6d92569038f8fbd835c9eb0be5518e19c0b","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2335f7cdcf82e1ea47a196ef3dafc6d92569038f8fbd835c9eb0be5518e19c0b","downloaded_from":"2026-09-10T02:11:51.751Z","last_downloaded_at":"2026-09-10T02:11:51.751Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483221","source_sha256":"c6af70f36ae0e192991d5c126d368138ae5bf1e34026b740a972a3950f5e08d4"}}