EITF reaches final consensus for produced and licensed episodic television content
KPMG reports that the EITF has concluded on amendments to align the accounting and disclosure for episodic television series to the guidance applicable to film.
Accounting Standard Update, 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
Episodic television series - All companies in the film production and distribution industry that produce or license content
- Effective for annual and interim periods in fiscal years beginning after December 15, 2019 for public entities and December 15, 2020 for private entities.
- Aligns the cost capitalization guidance for episodic content with guidance for films by removing the content distinction
- Adds requirement to review and revise estimates of the remaining use of the film group in each reporting period
- Defines the unit of account, additional impairment indicators and model to be used for impairment testing
- Adds additional disclosure requirements
- Effective for both public and private entities on a prospective basis from the interim period of adoption
- Key facts
- Transition and effective dates