{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/928/10/","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","number":"928-10","topic":"928","title":"Overall","area":"Industry","paragraphs":3,"summary":"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.","concepts":["music industry","license agreement","music copyright","record master","artist compensation cost","recording artist royalties","minimum guarantee","incremental industry guidance"],"categories":["Industry-specific","Revenue","Recognition","Intangibles and goodwill"],"level":"introductory","topic_title":"Entertainment—Music","sections":[{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"928-10-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">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 <a href=\"/glossary/r/#record-master\" class=\"term\" title=\"The master tape resulting from the performance of the artist. It is used to produce molds for commercial record production and other tapes for use in making cartridges, cassettes, DVDs, and reel tapes. The costs of producing a record master include the cost of the musical talent (musicians, vocal background, and arrangements); the cost of the technical talent for engineering, directing, and mixing; costs for the use of the equipment to record and produce the master; and studio facility charges. Under the standard type of artist contract, the record company bears a portion of the cost and recovers a portion of the cost from the artist out of designated royalties earned. However, either party may bear all or most of the cost.\"><span>record masters</span></a>.<span class=\"sfragment\" id=\"sfr_E3F09B0F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> This Topic provides accounting guidance for such <a href=\"/glossary/l/#license-agreements\" class=\"term\" title=\"Contractual arrangements entered into by an owner (licensor) of a record master or music copyright with a licensee granting the licensee the right to sell or distribute records or music for a fixed fee paid to the licensor or for a fee based on sales of records or music. License agreements are modifications of the compulsory provisions of the copyright law.\"><span>license agreements</span></a>, as well as for artist compensation costs, for compensation paid to recording artists in the form of <a href=\"/glossary/r/#royalties\" class=\"term\" title=\"Amounts paid to record producers, songwriters, or other artists for their participation in making records and to music publishers for their copyright interest in music. Amounts for artists are determined by the terms of personal service contracts negotiated between the artists and record entities and usually are determined based upon a percentage of sales activity and license fee income, adjusted for estimated sales returns. Royalties for publishing are based on the copyright or other applicable laws, but the requirements of the law may be modified by licenses issued by the publishers.\"><span>royalties</span></a>, and for the costs of producing record masters. It also addresses the accounting by licensees for various fees and for any <a href=\"/glossary/m/#minimum-guarantee\" class=\"term\" title=\"An amount paid in advance by a licensee to a licensor for the right to sell or distribute records or music.\"><span>minimum guarantees</span></a> stipulated in a license agreement. </span></span></div></div>","snippet":"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 prov…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e807cc6af087bd7bdf1d36cdc605d50fc42b30a6db7c18d0f27b230fc4249b66","downloaded_from":"2026-09-10T02:12:12.808Z","last_downloaded_at":"2026-09-10T02:12:12.808Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483198","source_sha256":"bbc773c97143a36309830279408705dd9cea001fbbd715019b15483de63167f7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:692d7689a5bc1c35c08d49fe1553f1ca8300768b34fd5a3015a1651aa063b9e9","downloaded_from":"2026-09-10T02:12:12.808Z","last_downloaded_at":"2026-09-10T02:12:12.808Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483198","source_sha256":"bbc773c97143a36309830279408705dd9cea001fbbd715019b15483de63167f7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59dbcd42fa89754923b7822005756bee55ef2395601dc8b812b50b5a7d7bb278","downloaded_from":"2026-09-10T02:12:12.808Z","last_downloaded_at":"2026-09-10T02:12:12.808Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483198","source_sha256":"bbc773c97143a36309830279408705dd9cea001fbbd715019b15483de63167f7"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"928-10-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">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.</div></div>","snippet":"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 Enterta…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:47dfc162025596600693ce5b719f942d051baffe4904c4648df41b6435a58572","downloaded_from":"2026-09-10T02:12:15.749Z","last_downloaded_at":"2026-09-10T02:12:15.749Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483173","source_sha256":"04e7f468086921f47e38393945e6a519091e7efbee475a6ecb2c6a86a2a08fee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:14ec646ce6cae6f790dc270db93254e9e44ac7a9976449a5685de89cfcde7a53","downloaded_from":"2026-09-10T02:12:15.749Z","last_downloaded_at":"2026-09-10T02:12:15.749Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483173","source_sha256":"04e7f468086921f47e38393945e6a519091e7efbee475a6ecb2c6a86a2a08fee"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"928-10-15-2","para":"15-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E3F8C655-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in the Entertainment—Music Topic applies to </span></span><span class=\"sfragment\" id=\"sfr_E3F8C74A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">licensors and licensees in the record and music industry. </span></span></div></div>","snippet":"The guidance in the Entertainment—Music Topic applies to licensors and licensees in the record and music industry.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50e589a390c514249a644b1e5ce8276b04ef4c9883eb0ddbdaa16b9900246d52","downloaded_from":"2026-09-10T02:12:15.749Z","last_downloaded_at":"2026-09-10T02:12:15.749Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483173","source_sha256":"04e7f468086921f47e38393945e6a519091e7efbee475a6ecb2c6a86a2a08fee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9fb043ef79f86c56dd7bf4e29a098928eef3cf82f76bd6f55fb0cef8e11ffa25","downloaded_from":"2026-09-10T02:12:15.749Z","last_downloaded_at":"2026-09-10T02:12:15.749Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483173","source_sha256":"04e7f468086921f47e38393945e6a519091e7efbee475a6ecb2c6a86a2a08fee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0dc54f021d96c700b637f45a5877f9125dd5f8f90a53c0c08413ccc1be4d07e3","downloaded_from":"2026-09-10T02:12:15.749Z","last_downloaded_at":"2026-09-10T02:12:15.749Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483173","source_sha256":"04e7f468086921f47e38393945e6a519091e7efbee475a6ecb2c6a86a2a08fee"}}],"enrichment":{"summary":"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":["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)."],"categories":["Industry-specific","Revenue","Recognition","Intangibles and goodwill"],"audience_level":"introductory","student_note":"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.","related_topics":["928-340","928-405","928-430","926","606","920"],"key_concepts":["music industry","license agreement","music copyright","record master","artist compensation cost","recording artist royalties","minimum guarantee","incremental industry guidance"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:11616035583d5d54f4783fb60d393f44861178f65254ac52f343a78298527734","downloaded_from":"2026-09-10T02:12:12.808Z","last_downloaded_at":"2026-09-10T02:12:18.919Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"926-10","title":"Overall","topic_title":"Entertainment—Films","score":0.829,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1da718b39c84e4747673d180fe3e597de3295b7b1d955d5bc2aac908a2b00b90","downloaded_from":"2026-09-10T02:11:25.730Z","last_downloaded_at":"2026-09-10T02:11:34.569Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"920-10","title":"Overall","topic_title":"Entertainment—Broadcasters","score":0.8142,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ab183543c194a9d172e4067fe23d23fa41ccd63b37373ea508aad44058490dc","downloaded_from":"2026-09-10T02:10:41.501Z","last_downloaded_at":"2026-09-10T02:10:50.750Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"922-10","title":"Overall","topic_title":"Entertainment—Cable Television","score":0.8033,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c6ab519fa0ac03117325d5fee8be799aa09d171a19760c3704ce5520860e1c1","downloaded_from":"2026-09-10T02:10:54.487Z","last_downloaded_at":"2026-09-10T02:11:00.249Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"720-928","title":"Entertainment—Music","topic_title":"Other Expenses","score":0.7731,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d3552ddfa3aadb89f6c1beb94d20c619653b92dd36d4471ed4f2399944ed9a3d","downloaded_from":"2026-09-10T01:10:22.861Z","last_downloaded_at":"2026-09-10T01:10:30.076Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not 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