Accounting

Hollywood Never Turns A Profit

It’s interesting that anytime you see a new film, whether at the cinema or on DVD, you’re unwittingly putting money in the palms of corporations that hardly ever turn a profit.

This is because most, if not all, Hollywood blockbusters use creative accounting to avoid the dreaded net profit figure.

[According to the Accounting Technician magazine May/June 2016 Edition] The ‘Return of the Jedi’ took in $475m on a budget of $32m but didn’t make a profit. ‘The Blind Side’ turned $49m into $400m but didn’t make a profit. ‘Harry Potter and the Order of the Phoenix’ was a hit with $612m income against a budget of $150m but declared a loss.

I suppose in a way, you could say that, as a generous punter, you pay the tax on the money being passed on to them so that they don’t have to.

[https://www.aat.org.uk/article/how-hollywood-accounting-allows-people-lie]

Advertisements

About Phoenix

Accountant and Home Educator

Discussion

2 thoughts on “Hollywood Never Turns A Profit

  1. I couldn’t access the article in the link but I’m interested in learning more about how they do this creative accounting.

    Posted by The Meades | August 17, 2016, 10:35 pm
  2. I bet you are! 😉

    Posted by Phoenix | August 17, 2016, 10:36 pm

Get in touch

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow PHOENIX DEBOLA ACCOUNTANCY SERVICES on WordPress.com

Enter your email address to receive notifications of new posts by email.

Join 3,137 other followers

POST CATEGORIES

0044 780 370 4496
0044 168 981 8119
%d bloggers like this: