Question

Summarize one industry accounting issue related to the motion picture industry.

Answer 1

one industry accounting issue related to the motion picture industry.

FAS 53 was the original standard that discussed the financial reporting for producers and distributors of motion picture films and was issued in 1981. The majority of a film’s revenue, through 1981, came from distribution to the movie theaters and free television.Since then, the film industry has changed extensively. Now there are a lot of additional forms being exploited, such as home videos, satellite and cable tv, and pay-per-view. The international revenue has also increased significantly. Because of the changes in theindustry, the AICPA developed amendments to the existing pronouncements for the motion picture industry.