Table of Contents

Chapter 1 - Entertainment  Broadcasters  Section 1. 1

Terminology. 1

Sources of GAAP. 1

Rules, Concepts, and Illustrations. 2

Key GAAP. 2

Program License Agreements. 2

Cost Allocation and Amortization of Capitalized Program License Agreement 3

Balance Sheet Valuation of Capitalized Program License Agreement 3

Network Affiliation Agreements. 4

Barter Transactions. 4

Entertainment - Cable Television. 5

Terminology. 5

Sources of GAAP. 5

Rules, Concepts, and Illustrations. 6

Key GAAP. 6

Establishment of the Prematurity Period. 6

Accounting for Costs during the Prematurity Period. 7

Capitalization of Interest Costs during the Prematurity Period. 8

Recognition of Hookup Revenue and Amortization of Capitalized Costs. 8

Franchise Applications. 9

Recoverability of Capitalized Assets. 9

Chapter 1 - Section 1 Review Questions. 10

Chapter 1 - Entertainment  Broadcasters  Section 2. 12

Entertainment - Films. 12

Terminology. 12

Sources of GAAP. 14

Rules, Concepts, and Illustrations. 14

Key GAAP. 14

Revenue Recognition-Basic Principles. 14

Discussion of Revenue Recognition Considerations. 15

Costs and Expenses. 18

Discussion of Cost and Expenses Considerations. 18

Entertainment - Music. 26

Terminology. 26

Sources of GAAP. 26

Rules, Concepts, and Illustrations. 27

Key GAAP. 27

Accounting for Licensors. 27

Compensation to Artists. 27

Cost of Record Masters Incurred by a Record Company. 28

Accounting by Licensees. 28

Disclosure Requirements. 28

New Revenue Standards. 29

Overview.. 29

Considerations of the New Revenue Model 30

Licenses. 30

Options to Acquire Additional Goods or Services. 31

Variable Consideration. 32

Barter Transactions. 32

Direct-Response Advertising. 32

New Leasing Standards. 33

Background. 33

Overview & Implications of the New Model 33

Chapter 1 - Section 2 Review Questions. 37

Review Questions Answers. 39

Glossary. 46

Index. 49

Final Examination. 51