Defining Issues   |   November 2018

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.


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 



Subscribe to our newsletter

Receive timely updates on accounting and financial reporting topics from KPMG.

Accounting Research Online

Visit KPMG's accounting research website for additional resources for your financial reporting needs.