Production expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2011 An assessee having a production business pays professional fees to artist and actors amounting to rs 9,50,000.
Though the film has not yet released, what v'l be the treatment of this expenses as well as other production expenses

CA Kishore Tallam

CA Kishore Tallam (Expert)
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19 December 2011 If the film is not yet released, then the total expenditure incurred till date is to be kept under Inventory WIP and the total movie expenses incurred shall be charged off only when the film is completed in all respects and ready for sale.
Whether the movie is released or not doesn't change the accounting treatment.