LB&I Tier III Issue: Amortization of Intangibles: Licensed Program Contract Right
Amortization of Intangibles: Licensed Program Contract Right
Industry: Communications, Technology & Media
Fees for the rights to broadcast sporting events are among the biggest costs of television broadcasters and cable channel operators, running to the billions of dollars for the largest taxpayers. Many broadcasters and cable channel providers accrue their license fee liabilities upon the execution of the broadcast rights contracts and amortize the fees over the three-to-five-year term of the contract. Compliance takes the position that the taxpayer's accruals at contract execution are premature and that the fees may only be accrued as the games are played.
Issue Tiering - LB&I