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 



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