Hollywood accounting (also known as Hollywood bookkeeping) refers to the opaque accounting methods used by the film, video and television industry to budget and record profits for film projects. Expenditures can be inflated to reduce or eliminate the reported profit of the project thereby reducing the amount which the corporation must pay in royalties or other profit-sharing agreements, as these are based on the net profit.
Read more about Hollywood Accounting: Creative Accountants, How It Works, Examples, Production Accounting
Famous quotes containing the words hollywood and/or accounting:
“Whoever invented the meeting must have had Hollywood in mind. I think they should consider giving Oscars for meetings: Best Meeting of the Year, Best Supporting Meeting, Best Meeting Based on Material from Another Meeting.”
—William Goldman (b. 1931)
“At the crash of economic collapse of which the rumblings can already be heard, the sleeping soldiers of the proletariat will awake as at the fanfare of the Last Judgment and the corpses of the victims of the struggle will arise and demand an accounting from those who are loaded down with curses.”
—Karl Liebknecht (1871–1919)