FASB proposes improvements to accounting for episodic television series
Filed under: Assets, expenses, industry
KPMG reports on the proposed ASU related to the cost capitalization for episodic TV series. The previously announced consensus-for-exposure has now been issued as an exposure draft by the FASB.
Applicability
Proposed ASU on Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350)
- All companies in the film production and distribution industry that produce or license content
Relevant dates
- Exposure draft issued November 7, 2018
- Comments due December 7, 2018
Key impacts
The proposed amendments would:
- Align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization
- Require that an entity reassess estimates of the use of a film for a film in a film group and account for any changes prospectively
- Require that an entity test films and license agreements for program material in the scope of Subtopic 920-350 for impairment at a film group level when the film or license agreement is predominantly monetized with other films and license agreements
Report contents
- Applicability
- Key facts and impacts
- Episodic television series