Monday, May 29, 2023

Understanding Cumulative Profit Participation Accountings

Cumulative accountings refer to a method of calculating financial transactions that spans over an extended period. Instead of treating each individual transaction separately, cumulative accountings aggregate various transactions, creating a comprehensive record. This approach is commonly employed in situations where it is impractical or inefficient to account for each transaction individually.

It is the traditional approach for film and TV industry profit participation accountings as well as joint venture, certain merchandise statements and/or 360-degree accountings in the music and games industries.

See the below Screenshot for an example of a cumulative accounting (for a film to a producer):

To learn about profit participation audits, please click here.

Sunday, May 21, 2023

Audit and Objection Notices May Be Coming Due Due this Summer


If your client's accountings are rendered 90 days following the end of the semiannual period ended June 30, 2023, you usually must render a notice of objection prior to September 30 in order to reserve your client's right to audit his/her/its 2020 H1 statement.  Confusing? Yes, it is very confusing!

Call my firm Boschan Corp. for help at (424) 248-8866 or learn more about our royalty audits by clicking here. Please do not wait until September.  Your client's rights could expire sooner, depending on the relevant contractual language and statutes.