Improvements to accounting for costs of films and license agreements for program materials has been saved
Improvements to accounting for costs of films and license agreements for program materials
ASC 920 and ASC 926: License agreements for program materials
Film and television monetization and distribution methods are transforming. So, too, are film and television accounting methods. Know the key accounting issues, disclosure requirements, and transition considerations of accounting standards update (ASU) 2019-02 and how they might affect your company.
Potential issues facing the industry
ASU 2019-02 also amends and supersedes parts of the current disclosure guidance in ASC 926-20-50. Download our full report to see the updated disclosure requirements under the ASU.
What you should be thinking about
The industrywide changes for film and television accounting might inspire your company’s leaders to make three key considerations.
What is your readiness level?
The film and television accounting changes in ASU 2019-02 are already in effect for public entities. And the December 2020 effective date for nonpublic entities is fast approaching. If you haven’t already, your media and entertainment company’s leaders should start carefully examining the ASU’s impact on television and film industry accounting standards in terms of costs of films and license agreements for program materials amendments, then assess the impact it may have on their accounting policies, procedures, systems, and processes.