# ASC Topic 926: Entertainment—Films Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/926/) 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): 2026-09-10T02:11:25.730Z to 2026-09-10T02:12:10.722Z Record version: sha256:5302c0a15f058f53e17facd1d6e3df9fc324e88d2b1455aad31ea45f5fd646aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 926 (Entertainment—Films) supplies only incremental, industry-specific guidance for producers and distributors that own or hold rights to exploit films in any market or territory; entities in scope must still apply all other applicable GAAP, and recorded music (Topic 928), cable television (Topic 922), broadcasters (Topic 920), and marketed software (Topic 985, Subtopic 720-35) are excluded (926-10-05-1, 15-1 through 15-3). The core measurement subtopic, 926-20, requires film costs (including production overhead and property/adaptation costs, but not administrative and general expenses) to be capitalized and reported as a separate balance sheet asset (926-20-25-1 through 25-5). The central idea is the predominant monetization strategy determined when capitalization begins: a film monetized on its own is amortized by the individual-film-forecast-computation method (current-period revenue ÷ estimated remaining unrecognized ultimate revenue at the beginning of the fiscal year), while a film in a film group is expensed based on a reasonably reliable estimate of its use (926-20-35-1 through 35-3C). Ultimate revenue estimates are revised each reporting date with prospective catch-up (926-20-35-3), are capped at 10 years from release (926-20-35-5), and unamortized costs are written down to fair value upon triggering events—write-downs may never be restored (926-20-35-13). Source downloaded (UTC): 2026-09-10T02:11:25.730Z to 2026-09-10T02:11:34.569Z Record version: sha256:31dee99db1e73f58c622fdc863ad20c47eb8ce3acce5df9982710e59fc0fd9e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-10: Entertainment—Films — Overall ### Machine-generated study aids ```json { "summary": "ASC 926-10 is the overall/scope subtopic for Entertainment—Films. It establishes that Topic 926 provides only incremental, industry-specific guidance on film costs, participation costs, and manufacturing costs for producers and distributors that own or hold rights to distribute or exploit films in any market or territory. Entities in scope must still apply all other applicable GAAP not contained in Topic 926.", "key_points": [ "Topic 926 provides accounting and reporting guidance for the film production and distribution industry covering film costs, participation costs, and manufacturing costs (926-10-05-1).", "The Subtopics of Topic 926 give only incremental industry-specific guidance; entities in scope must also comply with applicable guidance outside the Topic (926-10-15-1).", "Scope covers all producers or distributors that own or hold rights to distribute or exploit all kinds of films in one or more markets and territories, whether exploited directly or licensed or sold to others (926-10-15-2).", "Excluded from scope: recorded music products (Topic 928), cable television entities (Topic 922), and broadcasters (Topic 920) (926-10-15-3(a)-(c)).", "Also excluded: costs of computer software to be sold, leased, or otherwise marketed (Topic 985) and film and software costs for developing entertainment and educational software products (Subtopic 720-35) (926-10-15-3(d), (f)).", "One former scope exclusion, 926-10-15-3(e), was superseded by ASU 2014-09 (the revenue recognition standard)." ], "categories": [ "Industry-specific", "Recognition", "Presentation" ], "audience_level": "introductory", "student_note": "This subtopic is purely scope-setting: its exam value is knowing which entertainment entity applies which topic (films 926, music 928, cable 922, broadcasters 920, marketed software 985). The common misunderstanding is treating Topic 926 as a self-contained framework—it is only incremental guidance layered on top of general GAAP.", "related_topics": [ "926-20", "926-330", "926-605", "920", "922", "928" ], "key_concepts": [ "film costs", "participation costs", "manufacturing costs", "producers and distributors", "exploitation rights", "markets and territories", "incremental industry guidance", "scope exclusions" ] } ``` Source downloaded (UTC): 2026-09-10T02:11:25.730Z to 2026-09-10T02:11:25.730Z Record version: sha256:220767e448b610f43406f66674676de5046da23f4f922232ce33f27867744eae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/926/10/#00-status) SEC content: no ##### [926-10-00-1](https://asc.understandingaccounting.org/asc/926/10/#926-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:25.730Z to 2026-09-10T02:11:25.730Z Record version: sha256:0f46d328f5ede133e78d98e02ba2faa675b59376fb0a93a4dfd62444aa33c6f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
RevenueSupersededAccounting Standards Update No. 2014-0905/28/2014
926-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
926-10-15-3AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T02:11:28.929Z to 2026-09-10T02:11:28.929Z Record version: sha256:07eebf75a27c2a3c03f261e8dba92d900bf2945e7102cb9ddb70e08486704aa8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/926/10/#05-overview-and-background) SEC content: no ##### [926-10-05-1](https://asc.understandingaccounting.org/asc/926/10/#926-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:28.929Z to 2026-09-10T02:11:28.929Z Record version: sha256:ed9942f0b9312fe039ec3dd18b4899477bfa86a5d34d7dcfe159f8515a9bb366 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Entertainment—Films Topic provides accounting and reporting guidance for entities in the [film](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 and distribution industry for [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."), [participation costs](https://asc.understandingaccounting.org/glossary/p/#participation-costs "Parties involved in the production of a film may be compensated in part by contingent payments based on the financial results of a film pursuant to contractual formulas (participations) and by contingent amounts due under provisions of collective bargaining agreements (residuals). Such parties are collectively referred to as participants, and such costs are collectively referred to as participation costs. Participations may be given to creative talent, such as actors or writers, or to entities from whom distribution rights are licensed."), and manufacturing costs. Source downloaded (UTC): 2026-09-10T02:11:31.944Z to 2026-09-10T02:11:31.944Z Record version: sha256:b36ffc2c9ba03157e41cfe8d919f5abe52012085edd4badb129250cdaa287a55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/926/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [926-10-15-1](https://asc.understandingaccounting.org/asc/926/10/#926-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:31.944Z to 2026-09-10T02:11:31.944Z Record version: sha256:2cb298456c5fa2dbf48feafa11887126c3508729eebb71418b43d3d7623c9a34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Entertainment—[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.") Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Section of the individual Entertainment—Films Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic. #### Entities ##### [926-10-15-2](https://asc.understandingaccounting.org/asc/926/10/#926-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:31.944Z to 2026-09-10T02:11:31.944Z Record version: sha256:c292198b15d08aadb7829d0f2c3fa788aa1b73b52c7dd2ba75182ae4ab1c038f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to all entities that are producers or distributors that own or hold rights to distribute or exploit all kinds of films in one or more [markets](https://asc.understandingaccounting.org/glossary/m/#market "A distribution channel within a certain territory. Examples of markets include theatrical exhibition, home video, pay television, free television, and the licensing of film-related products.") and territories. This Topic also applies to films exploited by the entity directly, or licensed or sold to others. #### Transactions ##### [926-10-15-3](https://asc.understandingaccounting.org/asc/926/10/#926-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:31.944Z to 2026-09-10T02:11:31.944Z Record version: sha256:7b5c8e8bd3af57dbc54dfa975d28384dd8642b3b6d607c70f19c13a9a5934fc4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following transactions and activities: 1. a Accounting for the creation and distribution of recorded music products. For guidance on this subject, see Topic 928. 2. b Financial reporting by cable television entities. For guidance on this subject, see Topic 922. 3. c Financial reporting by broadcasters. For guidance on this subject, see Topic 920. 4. d Accounting for the costs of computer software to be sold, leased, or otherwise marketed. For guidance on this subject, see Topic 985. 5. e [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 6. f Accounting for the film and software costs associated with developing entertainment and educational software products. For guidance on this subject, see Subtopic 720-35. Source downloaded (UTC): 2026-09-10T02:11:36.539Z to 2026-09-10T02:12:10.722Z Record version: sha256:70c1482ab298048c1a9d16b8bea9042b321efb14a499fc9f0fac9fda9cf9fcff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20: Entertainment—Films — Other Assets—Film Costs ### Machine-generated study aids ```json { "summary": "ASC 926-20 governs how film production and distribution entities capitalize, amortize, impair, and disclose film costs, which must be reported as a separate asset on the balance sheet (926-20-25-1). Films predominantly monetized on their own are amortized by the individual-film-forecast-computation method — current-period revenue over remaining unrecognized ultimate revenue as of the beginning of the fiscal year (926-20-35-1) — while films in a film group are expensed based on a reasonably reliable estimate of the film's use (926-20-35-2). Unamortized film costs are written down to fair value when triggering events indicate impairment, and such write-downs may never be restored (926-20-35-13).", "key_points": [ "Film costs are reported as a separate balance sheet asset and include production overhead and property/adaptation costs, but exclude administrative and general expenses and losses on abandoned properties (926-20-25-1 through 25-5); costs of significant changes to a film are added to film costs and expensed as related revenue is recognized (926-20-25-8).", "The predominant monetization strategy (on its own vs. with other films and/or license agreements, i.e., a film group) is determined when capitalization begins and is reassessed only upon a significant change in strategy, evaluated over the film's entire life; results differing from expectations are not a significant change (926-20-35-3B through 35-3C).", "Amortization for a film monetized on its own begins upon release and uses the individual-film-forecast fraction: current-period actual revenue divided by estimated remaining unrecognized ultimate revenue at the beginning of the fiscal year, applied to unamortized costs (926-20-35-1); multiple seasons of an episodic television series are a single product.", "Estimates of ultimate revenue are revised each reporting date and changes are applied prospectively from the beginning of the fiscal year of change, with the catch-up difference charged or credited in the period of revision (926-20-35-3).", "Ultimate revenue is capped at 10 years from initial release (20 years from acquisition for film libraries of films released at least 3 years before acquisition; 5 years from the most recent episode for series still in production) and excludes unproven technologies, inflation projections, and advertising reimbursements, which offset exploitation costs (926-20-35-5).", "Unamortized film costs are tested for impairment when triggering events indicate fair value of a film or film group may be below carrying amount; the excess is written off to income, is not restorable, and a film-group loss is allocated pro rata on relative carrying amounts without reducing an individually valued film below its fair value (926-20-35-12 through 35-19).", "A property not set for production within three years of the first capitalized transaction is presumed disposed of; loss equals carrying amount less fair value, which is presumed zero absent a committed plan to sell, and remaining unamortized costs are written off when a film is substantively abandoned (926-20-40-1 through 40-5)." ], "categories": [ "Subsequent measurement", "Impairment", "Industry-specific", "Disclosure" ], "audience_level": "intermediate", "student_note": "The exam trap is the mechanics of revised estimates: the denominator resets to ultimate revenue remaining from the beginning of the fiscal year of change (revised ultimate revenue less cumulative prior recognized revenue) and is applied prospectively to unamortized costs — never restated retroactively. Also remember that post-ASU 2019-02, streaming-style films in a film group are not amortized by the forecast method at all, and film cost write-downs can never be reversed.", "related_topics": [ "926-10", "926-720", "920-350", "606", "820", "360" ], "key_concepts": [ "film costs", "individual-film-forecast-computation method", "ultimate revenue", "film group", "predominant monetization strategy", "production overhead", "participation costs", "impairment write-down to fair value" ] } ``` Source downloaded (UTC): 2026-09-10T02:11:36.539Z to 2026-09-10T02:11:36.539Z Record version: sha256:94d81cb48c39a067ced7d340a5fbdaad9c393b188bd9571f77f10c17e283c93e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/926/20/#00-status) SEC content: no ##### [926-20-00-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:36.539Z to 2026-09-10T02:11:36.539Z Record version: sha256:300059525a0c274f7a4de5598f18b9ab90c3c1048c74ebb0e00e9fc794b0a40e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
Film GroupAddedAccounting Standards Update No. 2019-0203/06/2019
Initial MarketSupersededAccounting Standards Update No. 2019-0203/06/2019
RevenueSupersededAccounting Standards Update No. 2014-0905/28/2014
Secondary MarketsSupersededAccounting Standards Update No. 2019-0203/06/2019
Significant ChangesSupersededAccounting Standards Update No. 2019-0203/06/2019
Significant Changes to a FilmAddedAccounting Standards Update No. 2019-0203/06/2019
Spot RateAddedAccounting Standards Update No. 2014-0603/14/2014
926-20-25-6SupersededAccounting Standards Update No. 2019-0203/06/2019
926-20-25-6AmendedAccounting Standards Update No. 2014-0905/28/2014
926-20-25-7SupersededAccounting Standards Update No. 2019-0203/06/2019
926-20-25-8AmendedAccounting Standards Update No. 2019-0203/06/2019
926-20-35-1AmendedAccounting Standards Update No. 2019-0203/06/2019
926-20-35-1AmendedAccounting Standards Update No. 2014-0905/28/2014
926-20-35-2AmendedAccounting Standards Update No. 2019-0203/06/2019
926-20-35-3A through 35-3C
AddedAccounting Standards Update No. 2019-0203/06/2019
926-20-35-4AmendedAccounting Standards Update No. 2019-0203/06/2019
926-20-35-5AmendedAccounting Standards Update No. 2014-0905/28/2014
926-20-35-6AmendedAccounting Standards Update No. 2014-0905/28/2014
926-20-35-7AmendedAccounting Standards Update No. 2014-0603/14/2014
926-20-35-9 through 35-11
SupersededAccounting Standards Update No. 2019-0203/06/2019
926-20-35-12AmendedAccounting Standards Update No. 2019-0203/06/2019
926-20-35-12AmendedAccounting Standards Update No. 2012-0710/24/2012
926-20-35-12AAddedAccounting Standards Update No. 2019-0203/06/2019
926-20-35-12BAddedAccounting Standards Update No. 2019-0203/06/2019
926-20-35-13 through 35-17
AmendedAccounting Standards Update No. 2019-0203/06/2019
926-20-35-14AmendedAccounting Standards Update No. 2014-0905/28/2014
926-20-35-18SupersededAccounting Standards Update No. 2012-0710/24/2012
926-20-35-19AddedAccounting Standards Update No. 2019-0203/06/2019
926-20-40-4SupersededAccounting Standards Update No. 2019-0203/06/2019
926-20-40-4AmendedAccounting Standards Update No. 2014-0905/28/2014
926-20-40-5AddedAccounting Standards Update No. 2019-0203/06/2019
926-20-45-1SupersededAccounting Standards Update No. 2019-0203/06/2019
926-20-45-2AddedAccounting Standards Update No. 2019-0203/06/2019
926-20-50-1SupersededAccounting Standards Update No. 2019-0203/06/2019
926-20-50-1AAddedAccounting Standards Update No. 2019-0203/06/2019
926-20-50-2AmendedAccounting Standards Update No. 2019-0203/06/2019
926-20-50-3SupersededAccounting Standards Update No. 2019-0203/06/2019
926-20-50-4SupersededAccounting Standards Update No. 2019-0203/06/2019
926-20-50-4AAmendedAccounting Standards Update No. 2024-0311/04/2024
926-20-50-4A through 50-4C
AddedAccounting Standards Update No. 2019-0203/06/2019
926-20-50-4CAmendedAccounting Standards Update No. 2024-0311/04/2024
926-20-55-2 through 55-4
AmendedAccounting Standards Update No. 2014-0905/28/2014
926-20-55-6 through 55-8
AmendedAccounting Standards Update No. 2014-0905/28/2014
926-20-55-9 through 55-11
SupersededAccounting Standards Update No. 2019-0203/06/2019
926-20-55-12 through 55-15
AmendedAccounting Standards Update No. 2019-0203/06/2019
926-20-55-13 through 55-15
AmendedAccounting Standards Update No. 2014-0905/28/2014
926-20-65-1AddedAccounting Standards Update No. 2012-0710/24/2012
926-20-65-2AddedAccounting Standards Update No. 2019-0203/06/2019
Source downloaded (UTC): 2026-09-10T02:11:40.039Z to 2026-09-10T02:11:40.039Z Record version: sha256:e4a6fcd5ef5ec4d050fd12b686b4b99a7ff26c2c8303b7a9b35190bf88389b62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/926/20/#05-overview-and-background) SEC content: no ##### [926-20-05-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:40.039Z to 2026-09-10T02:11:40.039Z Record version: sha256:471ef0c5fde2779cb930daa2bd2a93c36860d55d440fdc26956d47139e42a30e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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."). Source downloaded (UTC): 2026-09-10T02:11:43.106Z to 2026-09-10T02:11:43.106Z Record version: sha256:2fde46e40ce6e849ed4d9bc99bfaa1d6e167a159182af96202c0d82e96ba8eb5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/926/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [926-20-15-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:43.106Z to 2026-09-10T02:11:43.106Z Record version: sha256:f4d4f7588c32cff3dd2413ed664cc1f7851f48f93cd4b45719b1e132d8309733 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 926-10-15. 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. Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:2335f7cdcf82e1ea47a196ef3dafc6d92569038f8fbd835c9eb0be5518e19c0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/926/20/#35-subsequent-measurement) SEC content: no #### Film Costs Amortization ##### [926-20-35-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:b8ec6a3808a4c3928c14a0f2572240ce062741ebdc6727df16296df792688d94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a film that is predominantly monetized on its own, an entity shall amortize [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.") 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)](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-5), for each film before [exploitation costs](https://asc.understandingaccounting.org/glossary/e/#exploitation-costs "All direct costs (including marketing, advertising, publicity, promotion, and other distribution expenses) incurred in connection with the distribution of a film."), 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](https://asc.understandingaccounting.org/asc/926/20/#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](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-12)). ##### [926-20-35-2](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:799edbbd0a16896099be8ec688f2d7c594892841305128aefc4199042ca08e4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a film that is in a [film group](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements."), 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.) ##### [926-20-35-3](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:422a26623f250d9af01bed93c2beaa3c64389abea4bdc89f9b9ce50692477e2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-5)). ##### [926-20-35-3A](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-3A) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:83bab545952c60481d0dba59e16dd00a9746b95dbb1459aa0b20f25ebce13316 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/926/20/#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. #### Predominant Monetization Strategy ##### [926-20-35-3B](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-3B) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:8da674273debc7dd15ecc7036745f969a39bc3188bb1b88ecc707b393ed62ed4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [926-20-35-3C](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-3C) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:ab910e4c910aeb1a0c753f59b90a42a0ea201a4687abb54ccd15555699e16931 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Ultimate Revenue ##### [926-20-35-4](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:2b0b1fb8ba24914c7b18d6506f35f33c4cd11a7c676bcf1cb8041949a7687b28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-5). ##### [926-20-35-5](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:6fa1e0d8615175274651a1d1166077e1594a719a22558f570d2b90234837dc86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Ultimate revenue shall be limited by the following: 1. a For [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.") 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](https://asc.understandingaccounting.org/glossary/m/#market "A distribution channel within a certain territory. Examples of markets include theatrical exhibition, home video, pay television, free television, and the licensing of film-related products.") or [territory](https://asc.understandingaccounting.org/glossary/t/#territory "A geographic area in which a film is exploited. In most cases, a territory consists of a country. However, in certain instances, a territory may be defined as countries with a common language.") 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](https://asc.understandingaccounting.org/glossary/n/#nonrefundable-minimum-guarantee "Amount paid or payable by a customer in a variable fee arrangement that guarantees an entity a minimum fee on that arrangement. Such a guarantee applies to an amount paid by a customer immediately and an amount that the customer has a legally binding commitment to pay over a license period.") 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). ##### [926-20-35-6](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:b4fbefeef068b423e68ae60f46e2f561c5eabb7ad4554e8079f7bddb84efa0a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-15) ) in a [contract](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") in which an entity promises to grant a license within the scope of Topic 606. ##### [926-20-35-7](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:a0de7249fb47464fa0ca5888ad0345aad7d8376fa43ce137aba543bda2eac6a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All foreign currency estimates of future revenues shall be based on current [spot rates](https://asc.understandingaccounting.org/glossary/s/#spot-rate "The exchange rate for immediate delivery of currencies exchanged."). ##### [926-20-35-8](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:51a2247f077d735aba3e50717e89559c165bb708dc2bbb1325643edba0d77bd5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Ultimate revenue shall not include amounts representing projections for future inflation. ##### [926-20-35-9](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:e850eb1285308dfa1ff861a9261ebfacbdc3b87341b1ecff8cffcf784f3aa371 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/). ##### [926-20-35-10](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:a2013615c212402e043e2ad626807f75bce562ba68195f57ea5e063739998eb8 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/). ##### [926-20-35-11](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:fde256ffe13b412f9ebc9162746e00fa888e93bd623377d7d5ef881c6f88c56b 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/). #### Impairment ##### [926-20-35-12](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:c48ed1d859df19172080df62489042f8e00d81accf0a9fed30e2d4a59ded7f48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-12A)) or a [film group](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements.") (see paragraph [926-20-35-12B](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-12B)) may be less than its unamortized costs. ##### [926-20-35-12A](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-12A) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:2c2f178a0de3c328235f55e03fe3f7cb6121fb4c33297404ea7cf63ecb952d67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [926-20-35-12B](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-12B) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:6ce94fcf91672348cfdc1e8284cede6dc7528f8d25ff04947ba62a842174c501 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [926-20-35-13](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:76adad3baba7999184727edf129bdbca888272e71582d6eb7fd66761ce463de7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/720/926/#720-926-25-2) . 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](https://asc.understandingaccounting.org/asc/926/20/#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. ##### [926-20-35-14](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:dbcdbc64a557e1640e122e524fc0e87893b828525c7a759fddd2e319262c9e80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-5), shall be included. ##### [926-20-35-15](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:8a91baa82fbb81ff8e203a8006b06a3fa152c1377ccf30c7a67681559929b8ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/p/#producer "An individual or an entity that produces and has a financial interest in films for exhibition in movie theaters, on television, or elsewhere.") 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](https://asc.understandingaccounting.org/glossary/p/#participation-costs "Parties involved in the production of a film may be compensated in part by contingent payments based on the financial results of a film pursuant to contractual formulas (participations) and by contingent amounts due under provisions of collective bargaining agreements (residuals). Such parties are collectively referred to as participants, and such costs are collectively referred to as participation costs. Participations may be given to creative talent, such as actors or writers, or to entities from whom distribution rights are licensed."), or other necessary cash outflows in its determination of fair value when using a discounted cash flow model. ##### [926-20-35-16](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:76d3950eccc84fd15cf8d4bd0d32721ebecba6a1d61b0db33090e3eb78717273 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [926-20-35-17](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:225aa494bc4aa2fb8c17eb588fd95b3716f7dd17710f93f0f40f3229ed91caaf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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). ##### [926-20-35-18](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:f81a34fd8a088b9ff73bb0324d28802edd0c60797901cbaca0d3bd961e92df40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2012-07](https://asc.understandingaccounting.org/updates/asu-2012-07/). ##### [926-20-35-19](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:51.751Z to 2026-09-10T02:11:51.751Z Record version: sha256:46eeb6873688b2c5fcfde174ae516ea7c7a65aa96659c3f0590c36779d79f4e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-10T02:11:55.055Z to 2026-09-10T02:11:55.055Z Record version: sha256:40a79084f5e194d25e5c7bc74fa71d3a9dca157083e810bd1b45d9261249dac3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/926/20/#40-derecognition) SEC content: no #### Film Properties ##### [926-20-40-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:55.055Z to 2026-09-10T02:11:55.055Z Record version: sha256:596b5f343c1965958086d2e0e5f6e84571620307219af660b14e8f4aacb038d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall periodically review properties in development to determine whether they will ultimately be used in the production of a film. It shall be presumed that an entity will dispose of a property (whether by sale or abandonment) if it has not been [set for production](https://asc.understandingaccounting.org/glossary/s/#set-for-production "This means that management, with the relevant authority, implicitly or explicitly authorizes and commits to funding the production of a film; active preproduction has begun; and the start of principal photography is expected to begin within six months.") within three years from the time of the first capitalized transaction. ##### [926-20-40-2](https://asc.understandingaccounting.org/asc/926/20/#926-20-40-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:55.055Z to 2026-09-10T02:11:55.055Z Record version: sha256:71f1ad0bf2e4dbbd800172c6222343a8ff2475fcbf692c7e2dc3392dca314088 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity determines that a film property will not be used (disposed of), it shall recognize any loss by a charge to the income statement. Amounts written off shall not be subsequently reestablished as assets. ##### [926-20-40-3](https://asc.understandingaccounting.org/asc/926/20/#926-20-40-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:55.055Z to 2026-09-10T02:11:55.055Z Record version: sha256:f77fe3bd4339abfcdead7eda0dd588e27842e5bce9b5250ac7a8991b3446aee3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall measure the loss as the amount by which the carrying amount of the project exceeds its fair value. Unless management, having the authority to approve the action, has committed to a plan to sell such property, the rebuttable presumption is that the entity will abandon the property and, as such, its fair value shall be zero. ##### [926-20-40-4](https://asc.understandingaccounting.org/asc/926/20/#926-20-40-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:55.055Z to 2026-09-10T02:11:55.055Z Record version: sha256:468ec34137ba0b630c1283251032cbb17c956599657317b188b45005fbe13740 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/). ##### [926-20-40-5](https://asc.understandingaccounting.org/asc/926/20/#926-20-40-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:55.055Z to 2026-09-10T02:11:55.055Z Record version: sha256:f3b62a4a6a3690401f4cb8d4cc2b15af1285c458066b0fce5b3b7d3015ef49ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall write off remaining unamortized film costs when a film is substantively abandoned. Source downloaded (UTC): 2026-09-10T02:11:57.410Z to 2026-09-10T02:11:57.410Z Record version: sha256:730a0e2dd39d59bb1730e6430218b18d55640194ee620b0d4156d4853ad1ea1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/926/20/#45-other-presentation-matters) SEC content: no #### Film Costs ##### [926-20-45-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:57.410Z to 2026-09-10T02:11:57.410Z Record version: sha256:275f68746062f0cd6986c22e2612d8e34715c1a2f3b931e4b4f85dc67c644c1e 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/). ##### [926-20-45-2](https://asc.understandingaccounting.org/asc/926/20/#926-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:11:57.410Z to 2026-09-10T02:11:57.410Z Record version: sha256:a706fc831842795386b00408b84e3c0256b49ecfca5f54b3096a7b4daf29e7dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") shall be presented separately from the rights acquired under a [license agreement](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program materials within the scope of Subtopic 920-350 on entertainment—broadcasters either on the balance sheet or in the notes to financial statements. Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:558b53f3bc0f3ac4d7e73dbadf4989601bfa472cb3b105b3a3e08cdf67a02bdc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/926/20/#50-disclosure) SEC content: no #### Film Costs ##### [926-20-50-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:7cb2c887e9e90ae6afb03f07e443fbc98eba6a9c03c53bb4cb6281d69ae1351e 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/). ##### [926-20-50-1A](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-1A) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:1e5668e962b5aeb725f9dcdfa7c89c26057c81cea021ed411faa34984f12f13d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose its methods of accounting for [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."), including, but not limited to, the following: 1. a The method(s) used in computing amortization 2. b For impairment, a description of the unit(s) of account used for impairment testing and the method(s) used for determining fair value. ##### [926-20-50-2](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:c001396a5237c6ad1cc33fc7b0f44f4c67c10ee19dd5e3127043126096de9811 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the components of film costs (including released, completed and not released, in production, or in development or preproduction) separately for [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.") predominantly monetized on their own and films predominantly monetized with other films and/or license agreements. ##### [926-20-50-3](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:6f04c1db53aebbe5a8ebfd877ee4d507f084d07b27aeb9f6b575e7fcb51e18dc 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/). ##### [926-20-50-4](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:e2e3481e4d4f2047c5e2aec1302d832307418118e6c50ba72795130ce0176c96 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/). ##### [926-20-50-4A](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4A) Pending content: yes Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:47431127bdebfcbc6bf9d0cc4d06dbfe56f3d1b34d614d9d253db7b90259c61b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following information in the financial statements or in the notes to financial statements for each period for which a statement of financial performance is presented: 1. a The aggregate amortization expense for each period, separately for films predominantly monetized on their own and films predominantly monetized with other films and/or license agreements 2. b The caption in the income statement where the amortization is recorded. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)An entity shall disclose the following information in the financial statements or in the notes to financial statements for each period for which a statement of financial performance is presented: 1. a The aggregate amortization expense for each period, separately for films predominantly monetized on their own and films predominantly monetized with other films and/or license agreements 2. b The caption in the income statement where the amortization is recorded. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ##### [926-20-50-4B](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4B) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:8874e854c8d3fcc07b18f80287a71a9fd184f011ec7c5767fb728c4bf72d47c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the most recent annual period for which a statement of financial position is presented, an entity shall disclose the following in the notes to financial statements, separately for films predominantly monetized on their own and for films predominantly monetized with other films and/or license agreements: 1. a For completed and not released films, the portion of the costs of completed films that an entity expects to amortize during the upcoming operating cycle. An operating cycle is presumed to be 12 months. An entity shall disclose its operating cycle if it is other than 12 months. 2. b For released films, the portion of the costs of released films recognized at the date of the most recent statement of financial position that an entity expects to amortize within each of the next three operating cycles. ##### [926-20-50-4C](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4C) Pending content: yes Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:7d38c3d78e280c17c60594467e00515951232e36a20bc1063e346e67e7b59b68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For impairment amounts recognized for films or [film groups](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements."), an entity shall disclose the following information in the notes to financial statements that include the period in which the impairment is recognized: 1. a A general description of the facts and circumstances leading to the impairment 2. b The aggregate amount of impairment losses 3. c The caption in the income statement where the impairment losses are recorded 4. d If applicable, the segment(s) under Topic 280 where the impairment losses are recorded. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For impairment amounts recognized for films or [film groups](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements."), an entity shall disclose the following information in the notes to financial statements that include the period in which the impairment is recognized: 1. a A general description of the facts and circumstances leading to the impairment 2. b The aggregate amount of impairment losses 3. c The caption in the income statement where the impairment losses are recorded 4. d If applicable, the segment(s) under Topic 280 where the impairment losses are recorded. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. #### Film Libraries ##### [926-20-50-5](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:01.077Z to 2026-09-10T02:12:01.077Z Record version: sha256:532eaf1443369af6685e5539c6ccbc2d090f392450b52eec20d466f1fcf0cc35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For acquired film libraries, an entity shall disclose the amount of remaining unamortized costs, the method of amortization, and the remaining amortization period. Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:ef78916f8892ba9e7643bfce8e56e3949b5ae3cf7051bb7ddc11809f5ed96707 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/926/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [926-20-55-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:e3b3137fe70c274795e0d3f4fc14fd19933ff5d22a78c8c89f09ceb44a0cf0a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-1)). ##### [926-20-55-2](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:cd3d2811e70b7d9819aa62976f3b96f4b88bcdae39d91099a1578570bd9557ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/p/#participation-costs "Parties involved in the production of a film may be compensated in part by contingent payments based on the financial results of a film pursuant to contractual formulas (participations) and by contingent amounts due under provisions of collective bargaining agreements (residuals). Such parties are collectively referred to as participants, and such costs are collectively referred to as participation costs. Participations may be given to creative talent, such as actors or writers, or to entities from whom distribution rights are licensed."): $10,000. ##### [926-20-55-3](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:2e697c371ff6ca0e4b40a8ddc50ccbbfa562e0cdbc398334652c2478e705895d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Film cost amortization in Year 1: - $60,000 recognized revenue/$100,000 ultimate revenue x $50,000 film cost = $30,000 ##### [926-20-55-4](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:b4d0a47c5387b2ed2ecabeffa3dc240a6b36b234e10325c1f84545f1885d98ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Participation costs accrued in Year 1: - $60,000 recognized revenue/$100,000 ultimate revenue x $10,000 ultimate participation costs = $6,000 ##### [926-20-55-5](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:f74d84824a234db64d6eedd33c57ca301eca93cfa166a8192b8605947d83d53a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-3)). ##### [926-20-55-6](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:f87502eb59ebe19c06cae936d2b5fda448c9bf3f483a267ffc333dba21a3a69f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [926-20-55-7](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:7b3c464f2776ccdc95dc2d67575e880992763c9cced798e0aef2540dc02f7f51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Film Cost amortization in Year 2: - $10,000 recognized revenue/$30,000 remaining ultimate revenue x $20,000 unamortized [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.") = $6,667. The $30,000 remaining ultimate revenue is computed as follows: Year 2 revised ultimate revenue of $90,000 minus cumulative prior recognized revenue of $60,000. The $20,000 unamortized film costs is computed as follows: Film cost of $50,000 minus cumulative prior amortization of $30,000. ##### [926-20-55-8](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:04dae6ffb7dbde3939c8dc97a2799231289047eace046a7c255def22a2998ccd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Participation costs accrued in Year 2: - $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: Year 2 revised ultimate revenue of $90,000 minus cumulative prior recognized revenue of $60,000. The $3,000 remaining ultimate participation costs is as follows: Year 2 revised ultimate participation expense of $9,000 minus cumulative prior accrual of $6,000. ##### [926-20-55-9](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:69ef5179db0bb9ecebe7e0ac3e31740cc5314f808d370de1bd885eac01ed5662 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/). ##### [926-20-55-10](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:9c6cfbd44092cbce697c60426ebe7dc99d43e489d0fa105876bb77c42376a27a 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/). ##### [926-20-55-11](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:eb681ded7aec4cf411ebf8d94c6e46299fafbe05bf776737462eea4db4f9d19a 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/). ##### [926-20-55-12](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:f0d4f364a3197442285d9fd2236489e1c6d6b19e60218dfedb749d6a115045db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-1)). ##### [926-20-55-13](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:e4c1bfbdcbf1f15339e4f91ea18c2a69b963adff5ff0064525a8922fce848433 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/updates/asu-2019-02/). 4. d Costs of production are the following: 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2019-02](https://asc.understandingaccounting.org/updates/asu-2019-02/). 2. 2 Season 1: $16,000 3. 3 Season 2: $18,000. 5. e Recognized and remaining ultimate revenues are the following. - ![](https://asc.understandingaccounting.org/asc-img/GUID-2BA1A11A-A74B-4CB4-9975-D6120012B640-low.gif) 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. - ![](https://asc.understandingaccounting.org/asc-img/GUID-CC877281-57BF-41A4-B615-95DA14F4A9F2-low.gif) As of Season 1 " $2,000 " As of Season 2 " $3,000 " ##### [926-20-55-14](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:b0ba072af716118dda06240358f63977d6756db104deb39e61159fa9e994f8e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amortization of film costs in accordance with paragraph [926-20-35-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-1) is determined as follows for Seasons 1 and 2. - ![](https://asc.understandingaccounting.org/asc-img/GUID-78F4E593-979B-4A6C-9A7E-42CA5ABA1950-low.gif) Season 1 " $8,000 " (a) x " $16,000 " (c) = "$2,667 " " $48,000 " (b) (a) Recognized and reported revenue during the current season. (b) Remaining ultimate revenue at the beginning of the current season. (c) Remaining unamortized film costs at the beginning of Season 1. - ![](https://asc.understandingaccounting.org/asc-img/GUID-901EF232-0C4E-426F-9948-E995111C264F-low.gif) Season 2 " $11,000 " (a) x " $31,333 " (c) = "$5,650 " " $61,000 " (b) (a) Recognized and reported revenue during the current season. (b) Remaining ultimate revenue at the beginning of the current season. (c) "Remaining unamortized film costs at the beginning of Season 2 ($13,333 unamortized as of the end of Season 1 plus the $18,000 cost of production of Season 2)." ##### [926-20-55-15](https://asc.understandingaccounting.org/asc/926/20/#926-20-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:03.761Z to 2026-09-10T02:12:03.761Z Record version: sha256:3ad7ddb2f23baaadfa320b7777fe3f1eaa7cefddb259336f5ea7e92f9ecca172 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accrual of participation costs is determined as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-51982100-0983-4A9B-A4D4-BC9C14731B8D-low.gif) Season 1 " $8,000 " (a) x " $2,000 " (c) = $333 " $48,000 " (b) (a) Recognized and reported revenue during the current season. (b) Remaining ultimate revenue at the beginning of the current season. (c) Remaining unaccrued participation costs at the beginning of Season 1. - ![](https://asc.understandingaccounting.org/asc-img/GUID-3CF9A532-CEF8-4FD2-BBDD-5C373B0E23F6-low.gif) Season 2 " $11,000 " (a) x " $2,667 " (c) = $481 " $61,000 " (b) (a) Recognized and reported revenue during the current season. (b) Remaining ultimate revenue at the beginning of the current season. (c) "Remaining unaccrued participation costs at the beginning of Season 2 (ultimate cost of $3,000, less prior cumulative accural of $333)." Source downloaded (UTC): 2026-09-10T02:12:07.094Z to 2026-09-10T02:12:07.094Z Record version: sha256:672779105ff11bc0ce1cd4e2e8847949b85ccd115680d65ea567bd4839193cdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 926-20-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/926/20/#65-transition-and-open-effective-date-information) SEC content: no ##### [926-20-65-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:07.094Z to 2026-09-10T02:12:07.094Z Record version: sha256:70d7996692d3de4454207a6455cd62e61df8316a1e82d4c550af472db2f6050b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/26/2015 after the end of the transition period stated in Accounting Standards Update No. 2012-07, _Entertainment—Films (Topic 926): Accounting for Fair Value Information That Arises after the Measurement Date and Its Inclusion in the Impairment Analysis of Unamortized Film Costs_. ##### [926-20-65-2](https://asc.understandingaccounting.org/asc/926/20/#926-20-65-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:07.094Z to 2026-09-10T02:12:07.094Z Record version: sha256:3cc6d45a0b981d15f1b408068f45e08264a48d914d04ddb90a4ae6cac1428b54 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 12/14/2022 after the end of the transition period stated in Accounting Standards Update No. 2019-02, _Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials_.