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.