Question

Read Hollywood Accounting in Wikipedia.https://en.wikipedia.org/wiki/Hollywood_accounting

Read How Hollywood accounting can make a $450M movie 'unprofitable https://www.theatlantic.com/business/archive/2011/09/how-hollywood-accounting-can-make-a-450-million-movie-unprofitable/245134/

Required:

A.Explain what is meant by Hollywood Accounting, and why it exists?

B.Explain and give an example of how a film company can inflate their costs and lower their net income for a specific movie through the use of a related entity (or entities).

C.List a 3 examples of movies that were box office smashes, but were considered "losers" on the balance sheet and income statement.

D.What do powerful stars do to make sure they get fairly paid?

E.Does the practice of Hollywood Accounting violate GAAP / IFRS?