ASC

ASC 928-10

Overall

928 Entertainment—Music

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In brief

IntroductoryIndustry-specificRevenueRecognitionIntangibles and goodwill

ASC 928-10 is the overview and scope subtopic for accounting by entities in the record and music industry. It flags the topics covered elsewhere in ASC 928 — licensing of music copyrights and record masters, artist compensation costs (including royalties paid to recording artists), costs of producing record masters, and licensees' accounting for fees and minimum guarantees. The guidance is incremental industry-specific guidance only; entities in scope must still follow all other applicable GAAP.

Key points (5)
  • The Entertainment—Music Topic addresses accounting and reporting by entities in the music industry, including license agreements for music copyrights and record masters (928-10-05-1).
  • It provides guidance on artist compensation costs, compensation paid to recording artists in the form of royalties, and the costs of producing record masters (928-10-05-1).
  • It also addresses licensee accounting for various fees and for minimum guarantees stipulated in a license agreement (928-10-05-1).
  • Subtopics within ASC 928 provide only incremental industry-specific guidance; entities in scope must also comply with applicable guidance outside the Topic (928-10-15-1).
  • The guidance applies to both licensors and licensees in the record and music industry (928-10-15-2).

For students. This is a scope/overview subtopic, so the exam point is knowing what ASC 928 covers and that it is only incremental guidance — music entities still apply general GAAP (e.g., ASC 606 for revenue) unless ASC 928 says otherwise. A common misunderstanding is treating ASC 928 as a complete, self-contained accounting model for music companies.

music industrylicense agreementmusic copyrightrecord masterartist compensation costrecording artist royaltiesminimum guaranteeincremental industry guidance

Machine-generated study aid for ASC 928-10. Check the source paragraphs below.

928-10-05Overview and Background

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928-10-05-1
The Entertainment—Music Topic addresses the accounting and reporting by entities in the music industry. Such entities often enter into contractual agreements to license music copyrights or record masters. This Topic provides accounting guidance for such license agreements, as well as for artist compensation costs, for compensation paid to recording artists in the form of royalties, and for the costs of producing record masters. It also addresses the accounting by licensees for various fees and for any minimum guarantees stipulated in a license agreement.

928-10-15Scope and Scope Exceptions

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Overall Guidance

928-10-15-1
The Subtopics within the Entertainment—Music Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Entertainment—Music Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic.

Entities

928-10-15-2
The guidance in the Entertainment—Music Topic applies to licensors and licensees in the record and music industry.

Related subtopics