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Business
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| Number of pages / Number of words: |
3 / 678 |
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This is all with accordance to SFAS 53 - Financial Reporting by Producers and Distributors of Motion Picture Films, there is the amortization and participation cost to be calculated.
First Year Amortization:
First Year Actual Earned Revenue x Film Cost = First Year Amortization
Estimated Ultimate Revenue
First Year Participation Cost:
First Year Actual Earned Revenue x Est...
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Ultimate Participation Costs = 1st Yr Part. Cost
Estimated Ultimate Revenue
A proper estimation needs to be made to calculate any of these formulas, which cannot be made with the information given. However, this would be the idea to calculate the cost of sales of the first year. They should update the estimate of ultimate revenue and participation cost at each reporting date...
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General points of the essay
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