Wiley GAAP 2008

Cable Television: Perspective and Issues

FAS 51 sets forth accounting and reporting standards for the cable television industry. These standards apply to cable television systems in the prematurity period. During the prematurity period, the cable television system is partially under construction and partially in service. The prematurity period begins with the first earned subscriber revenue. Its end will vary with the system's circumstances but will be determined based on plans for completion of the first major construction period or achievement of a specified predetermined subscriber level at which no additional investment will be required for other than cable television plant. The length of the prematurity period varies with the franchise development and construction plans. Except in the smallest systems, programming is usually delivered to portions of the system, and some revenues are obtained before construction of the entire system is complete. Thus, virtually every cable television system experiences a prematurity period during which it is receiving some revenue while continuing to incur substantial costs related to the establishment of the total system.

Table . 25-1: Sources of GAAP

FAS
34, 51, 142, 144