Question

Your company has decided to consider competing against the local cable company and your Chiut Executive Oflicer has asked you to research the accounting hterature related to the following financial reporting issue: Intangible Costs related to the Cable Television Industry. You know that the FASB Accounting Standards Codification 9 is the source of authoritative generally accopted accounting principles recognized by the FASE and want to access for your research. Prepare a memo to your CEO. making sure each of the foliowing items is addressed:

The accounting standards topic number that addresses the cable television industry.
a) What is definition of the "prematurity period" for cable television companies?
b) How are programming costsrecorded during the prematurity period?
c) How should franchise application costs be recorded by these entities?
d) How should capitalized costs be amortized by these entities (subsequent measurement of costs)?

Answer 1

The accounting standards topic number that addresses the cable television industry is ASC 926-20 - Entertainment - Films: Cable Television. The prematurity period for cable television companies is the time period before they begin servicing customers and generating revenue. Programming costs are recorded as expenses during the prematurity period. Franchise application costs should be recorded as expenses by cable television companies. Capitalized costs should be amortized by these entities over their estimated useful lives.

Step-by-step explanation:

The accounting standards topic number that addresses the cable television industry is ASC 926-20 - Entertainment - Films: Cable Television.

a) The prematurity period for cable television companies is the time period before they begin servicing customers and generating revenue.

b) Programming costs are recorded as expenses during the prematurity period.

c) Franchise application costs should be recorded as expenses by cable television companies.

d) Capitalized costs should be amortized by these entities over their estimated useful lives.