ASC 922-10: Streamlining Cable Television Accounting Compliance with Accounting Software

ASC 922-10: Streamlining Cable Television Accounting Compliance with Accounting Software

Posted In | ASC Accounting

The cable television industry faces unique challenges and opportunities that require specialized accounting guidance. Accounting Standards Codification (ASC) 922-10, Cable Television, provides the framework for financial reporting in the cable television sector in the United States. Compliance with ASC 922-10 is essential for accurate financial reporting and maintaining investor confidence. This article explores how accounting software can help businesses in the cable television industry navigate the complexities of ASC 922-10 compliance, allowing for a more efficient financial reporting process and reducing the risk of non-compliance.

 

Understanding ASC 922-10

ASC 922-10, issued by the Financial Accounting Standards Board (FASB), covers various aspects of accounting in the cable television industry, including:
 

  1. Accounting for franchise fees and related costs, including capitalization and amortization.
     

  2. Accounting for subscriber acquisition costs, including direct response advertising and other expenses related to acquiring new customers.
     

  3. Accounting for programming rights, including recognition, valuation, and amortization.
     

  4. Disclosure requirements specific to the cable television industry.

 

Streamlining Cable Television Accounting Compliance with Accounting Software
 

To comply with ASC 922-10, businesses in the cable television industry must have a thorough understanding of the standard's requirements and maintain accurate financial records. Accounting software can greatly assist in this process by offering features that help ensure compliance, such as:

 

  1. Specialized cable television software: Several software solutions are designed specifically for the cable television industry, incorporating features that address the unique accounting requirements of ASC 922-10. These solutions can help businesses efficiently track and manage franchise fees, subscriber acquisition costs, and programming rights.
     

  2. Amortization schedules: Modern accounting software can automate the calculation and recording of amortization for franchise fees, subscriber acquisition costs, and programming rights, ensuring compliance with ASC 922-10 requirements.
     

  3. Real-time reporting: Real-time financial reporting capabilities enable businesses to access up-to-date information on their cable television operations. This allows for more informed decision-making and quick identification of potential compliance issues.
     

  4. Integration: Modern accounting software can integrate with other business systems, such as enterprise resource planning (ERP) and customer relationship management (CRM) software. This integration enables a seamless flow of information between different aspects of the business, ensuring that all relevant financial data is captured and reported accurately in compliance with ASC 922-10.
     

  5. Compliance monitoring: Some accounting software solutions offer built-in compliance monitoring features that can help businesses identify potential issues related to ASC 922-10. These features may include alerts or notifications when specific transactions or financial reporting elements do not align with the standard's requirements.

 

Compliance with ASC 922-10 is essential for businesses in the cable television industry to maintain accurate financial reporting and avoid potential penalties associated with non-compliance. By leveraging accounting software, cable television companies can streamline their financial reporting processes, reducing the risk of non-compliance and enabling more informed decision-making. In addition to helping businesses comply with ASC 922-10, accounting software can also support overall financial management and business success by providing real-time financial data, automating processes, and integrating with other systems.