production overhead

Industry1

1. 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).