Summary of Statement No. 53

Financial Reporting by Producers and Distributors of Motion Picture Films (Issued 12/81)


This Statement extracts the specialized accounting principles and practices from the AICPA Industry Accounting Guide, Accounting for Motion Picture Films, and AICPA Statement of Position 79-4, Accounting for Motion Picture Films, and establishes standards of financial accounting and reporting for producers and distributors of motion picture films. Exhibition rights transferred under license agreements for television program material shall be accounted for like sales by the licensor. The sale shall be recognized by the licensor when the license period begins and certain specified conditions have been met. Producers and distributors that license film exhibition rights to movie theaters generally shall recognize revenue when the films are shown. This Statement also describes how producers and distributors shall account for film costs and participation agreements.