participation costs and exploitation costs

Industry2

1. 926-10Overall926 Entertainment—Films

   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.

2. 926-20Other Assets—Film Costs926 Entertainment—Films

   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).