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.