Wiley GAAP 2008

Broadcasting: Perspective and Issues

FAS 63 sets forth accounting and reporting standards for the broadcasting industry. A broadcaster is an enterprise or an affiliated group of enterprises that transmits radio or television program material. Broadcasters acquire program exhibition rights through license agreements. A typical license agreement for program material (e.g., features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee. Ordinarily, the fee is paid in installments over a period generally shorter than the license period. The agreement usually contains a separate license for each program in the package. The license expires at the earlier of the last telecast allowed or the end of the license period. The licensee pays the required fee whether or not the rights are exercised. If the licensee does not exercise the contractual rights, the rights revert to the licensor with no refund to the licensee.

Table . 25-1: Sources of GAAP

FAS	EITF
63	87‐10