Revenue recognition for media companies

Making sense of a complex world

The second in the series of guides from PwC's Media Industry Accounting Group, this paper explores some of the main implications for media companies of the revenue recognition exposure draft re-exposed in November 2011.

Understanding shifts in revenue recognition for media companies

This practical guide is based on the exposure draft, Revenue from contracts with customers, which was issued on 14 November 2011. The proposed standard can result in significant shifts in how revenue is recognised, and we explore some of the effects for media companies. Read the paper to find out more about the effects on areas such as:

  • Licences
  • Returns
  • Contract costs
  • Multiple performance obligations
  • Player points and promotion programmes
  • Software and advertising arrangements

You’ll find a high level summary of key changes from the original exposure draft issued on 24 June 2010, along with examples that reflect the potential effect based on the proposed standard. In some cases, these effects could be considerable, requiring management to perform a comprehensive review of contracts, business practices and accounting policies; and also of the IT systems used to capture the support data.

As always, planning ahead can prevent painful surprises. Click here to download your copy now.