Welcome to the Entertainment Newsletter, containing content related to the people, news and business issues we see in our day-to-day service to the industry.
In This Issue
- Film production tax credit extended– On September 30, 2012 Governor Brown extended the tax credit for California based television and film productions through 2017. The $100 million annual program is designed to provide incentive for local production while slowing the trend towards out of state and overseas production.
- Real taxes in a virtual world – As technological advances fundamentally change the way products and services are sold, state tax rules have struggled to keep pace. Existing rules focus on the taxation of businesses based on a “physical presence” nexus standard and generally apply tax to the sale of property within a specific jurisdictional boundary.
- Possible adjustments to fair value measurements of film – Accounting for fair value of film costs, which represent management’s best estimate of how much future cash will be generated from the release of a film, is among the most complex and judgmental standards utilized by entertainment companies.
- Field work in Japan– GHJ’ own Greg Sills traveled to Tokyo, Japan to work on a theatrical film audit at the local offices of a major studio.