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:
“Where is Hollywood located? Chiefly between the ears. In that part of the American brain lately vacated by God.”
—Erica Jong (b. 1942)
“I, who am king of the matter I treat, and who owe an accounting for it to no one, do not for all that believe myself in all I write. I often hazard sallies of my mind which I mistrust.”
—Michel de Montaigne (1533–1592)