{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/926/20/#55-implementation-guidance-and-illustrations","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":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"926-20-55-1","para":"55-1","html":"
This Example provides an illustration of the individual-film-forecast method of amortization for a film in its initial year of release (in accordance with paragraph 926-20-35-1).
","snippet":"This Example provides an illustration of the individual-film-forecast method of amortization for a film in its initial year of release (in accordance with paragraph 926-20-35-1).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3b3137fe70c274795e0d3f4fc14fd19933ff5d22a78c8c89f09ceb44a0cf0a6","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-2","para":"55-2","html":"
This Example has the following assumptions:
  1. a
    Film cost: $50,000
  2. b
    Estimated ultimate revenue: $100,000
  3. c
    Actual revenue recognized in Year 1: $60,000
  4. d
    Estimated ultimate participation costs: $10,000.
","snippet":"This Example has the following assumptions:\n(a) Film cost: $50,000\n(b) Estimated ultimate revenue: $100,000\n(c) Actual revenue recognized in Year 1: $60,000\n(d) Estimated ultimate participation costs: $10,000.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd3d2811e70b7d9819aa62976f3b96f4b88bcdae39d91099a1578570bd9557ed","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-3","para":"55-3","html":"
Film cost amortization in Year 1:
","snippet":"Film cost amortization in Year 1:\n$60,000 recognized revenue/$100,000 ultimate revenue x $50,000 film cost = $30,000","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e697c371ff6ca0e4b40a8ddc50ccbbfa562e0cdbc398334652c2478e705895d","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-4","para":"55-4","html":"
Participation costs accrued in Year 1:
","snippet":"Participation costs accrued in Year 1:\n$60,000 recognized revenue/$100,000 ultimate revenue x $10,000 ultimate participation costs = $6,000","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4d0a47c5387b2ed2ecabeffa3dc240a6b36b234e10325c1f84545f1885d98ea","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-5","para":"55-5","html":"
This Example provides an illustration of the individual-film-forecast method of amortization for a film where estimates are revised subsequent to the initial year of release (in accordance with paragraph 926-20-35-3).
","snippet":"This Example provides an illustration of the individual-film-forecast method of amortization for a film where estimates are revised subsequent to the initial year of release (in accordance with paragraph 926-20-35-3).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f74d84824a234db64d6eedd33c57ca301eca93cfa166a8192b8605947d83d53a","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-6","para":"55-6","html":"
This Example has the following assumptions:
  1. a
    Film cost: $50,000
  2. b
    Estimated ultimate revenue:
    1. 1
      Year 1: $100,000
    2. 2
      Year 2: $90,000 (Note: not the remaining ultimate revenue starting from this year).
  3. c
    Actual revenue recognized:
    1. 1
      In Year 1: $60,000
    2. 2
      In Year 2: $10,000.
  4. d
    Estimated ultimate participation costs:
    1. 1
      Year 1: $10,000
    2. 2
      Year 2: $9,000 (Note: not the remaining ultimate participation costs starting from this year).
  5. e
    For Year 1, film cost amortization was $30,000 and participation costs accrued were $6,000.
  6. f
    Year 2 revised ultimate revenue is $90,000.
","snippet":"This Example has the following assumptions:\n(a) Film cost: $50,000\n(b) Estimated ultimate revenue:\n(1) Year 1: $100,000\n(2) Year 2: $90,000 (Note: not the remaining ultimate revenue starting from this year).\n(c) Actual r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f87502eb59ebe19c06cae936d2b5fda448c9bf3f483a267ffc333dba21a3a69f","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-7","para":"55-7","html":"
Film Cost amortization in Year 2:
","snippet":"Film Cost amortization in Year 2:\n$10,000 recognized revenue/$30,000 remaining ultimate revenue x $20,000 unamortized film costs = $6,667. The $30,000 remaining ultimate revenue is computed as follows: Year 2 revised ult…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7b3c464f2776ccdc95dc2d67575e880992763c9cced798e0aef2540dc02f7f51","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-8","para":"55-8","html":"
Participation costs accrued in Year 2:
","snippet":"Participation costs accrued in Year 2:\n$10,000 recognized revenue/$30,000 remaining ultimate revenue x $3,000 remaining ultimate participation costs = $1,000. The $30,000 remaining ultimate revenue is computed as follows…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:04dae6ffb7dbde3939c8dc97a2799231289047eace046a7c255def22a2998ccd","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-9","para":"55-9","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":"sha256:69ef5179db0bb9ecebe7e0ac3e31740cc5314f808d370de1bd885eac01ed5662","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-10","para":"55-10","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":"sha256:9c6cfbd44092cbce697c60426ebe7dc99d43e489d0fa105876bb77c42376a27a","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-11","para":"55-11","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:eb681ded7aec4cf411ebf8d94c6e46299fafbe05bf776737462eea4db4f9d19a","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-12","para":"55-12","html":"
This Example provides an illustration of the individual-film-forecast method of amortization for an episodic television series with multiple seasons (in accordance with paragraph 926-20-35-1).
","snippet":"This Example provides an illustration of the individual-film-forecast method of amortization for an episodic television series with multiple seasons (in accordance with paragraph 926-20-35-1).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f0d4f364a3197442285d9fd2236489e1c6d6b19e60218dfedb749d6a115045db","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-13","para":"55-13","html":"
This Example has the following assumptions:
  1. a
    An entity produces and distributes an episodic television series. Two seasons of the series are ultimately produced.
  2. b
    The entity's fiscal year end corresponds directly with the completion of each production season.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2019-02.
  4. d
    Costs of production are the following:
    1. 1
      Subparagraph superseded by Accounting Standards Update No. 2019-02.
    2. 2
      Season 1: $16,000
    3. 3
      Season 2: $18,000.
  5. e
    Recognized and remaining ultimate revenues are the following.
    • As of Season 1 Recognized and reported in Season 1 \" $8,000 \" Recognized and reported in Season 2 N/A \"Remaining ultimate revenue, Season 1\" \" $40,000 \" \"Remaining ultimate revenue, Season 2\" N/A \" $48,000 \" As of Season 2 Recognized and reported in Season 1 N/A Recognized and reported in Season 2 \" $11,000 \" \"Remaining ultimate revenue, Season 1\" \" $40,000 \" \"Remaining ultimate revenue, Season 2\" \" $10,000 \" \" $61,000 \"
  6. f
    Ultimate participation costs are as follows.
    • As of Season 1 \" $2,000 \" As of Season 2 \" $3,000 \"
","snippet":"This Example has the following assumptions:\n(a) An entity produces and distributes an episodic television series. Two seasons of the series are ultimately produced.\n(b) The entity's fiscal year end corresponds directly w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4c1bfbdcbf1f15339e4f91ea18c2a69b963adff5ff0064525a8922fce848433","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-14","para":"55-14","html":"
Amortization of film costs in accordance with paragraph 926-20-35-1 is determined as follows for Seasons 1 and 2.
","snippet":"Amortization of film costs in accordance with paragraph 926-20-35-1 is determined as follows for Seasons 1 and 2.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0ba072af716118dda06240358f63977d6756db104deb39e61159fa9e994f8e9","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},{"citation":"926-20-55-15","para":"55-15","html":"
Accrual of participation costs is determined as follows.
","snippet":"Accrual of participation costs is determined as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ad7ddb2f23baaadfa320b7777fe3f1eaa7cefddb259336f5ea7e92f9ecca172","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2199482f96378f0e9c3b8d3c6c7fe4847eee58ddf9d86101b3ce8da8ebccbc9c","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef78916f8892ba9e7643bfce8e56e3949b5ae3cf7051bb7ddc11809f5ed96707","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef78916f8892ba9e7643bfce8e56e3949b5ae3cf7051bb7ddc11809f5ed96707","downloaded_from":"2026-09-10T02:12:03.761Z","last_downloaded_at":"2026-09-10T02:12:03.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483220","source_sha256":"708e7b120bb3ef2afe0e44a32dd2ccd22b2c01145046f5a1913442579a9aecf9"}}