FASB proposal addresses accounting for TV series

FASB recently proposed a standard that would align the accounting for production costs of an episodic television series with the accounting for production of costs of films.

The proposal is described in Proposed Accounting Standards 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.

Comments on the proposal were due Dec. 7.

FASB also:

• Issued guidance on how to assess whether certain transactions between participants in collaborative arrangements should be accounted for within the board’s revenue recognition standard. The guidance is provided in Accounting Standards Update No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606. The amendments in the new standard take effect for public companies for fiscal years beginning after Dec. 15, 2019, and interim periods within those fiscal years. For all other organizations, the amendments take effect for fiscal years beginning after Dec. 15, 2020, and interim periods within fiscal years beginning after Dec. 15, 2021. Early adoption is permitted.
• Published a staff paper that provides information to private company franchisors as they decide how to recognize certain franchise fees under the new revenue recognition standard. The staff paper is available at fasb.org.