Issue no. 3/2015 | Media and Entertainment
This month the Accounting and Auditing Update focusses on the Media and Entertainment (M&E) sector and highlights key matters relating to accounting, financial reporting and regulatory areas relevant to this sector.
In this publication, we highlight four key areas of impact due to adoption of Ind AS: revenue recognition, intangible assets such as programme assets and similar rights, acquisitions and business combinations, and consolidation.
The sector has distinct and complex revenue arrangements such as: barter arrangements, arrangements where careful evaluation is required on whether revenue should be recognised at gross amount or net amount, free/discounted advertising and bonus spots, carriage fees, etc. Our articles explain the accounting requirements on these topics under current Indian GAAP and Ind AS.
Accounting of amortisation of intangible assets (e.g. media rights) is expected to be challenging under Ind AS. We cast our lens on the implementation of the new requirements under Ind AS.
In the interview section of our publication, we speak to CFOs/finance directors of leading companies from the industry, exploring some of the key accounting, reporting and topical matters relevant to the industry. This month’s issue features interviews with two industry leaders: Mr. Nitin Nadkarni, Chief Financial Officer, Multi Screen Media Private Limited and Mr. Sujit Vaidya, Vice President and Chief Financial Officer, The Walt Disney Company (India) Private Limited. They share their perspectives and experience on a wide range of issues.
The M&E sector faces various direct and indirect tax issues for example: withholding taxes, deductibility of expenses, impact of proposed Goods and Services Tax (GST), service tax, etc. Our article provides an overview on these requirements of the law on these aspects.
Finally, our publication also includes our regular round up of regulatory updates.
This issue includes :
- Impact of Ind AS on the M&E companies
- Conversation with industry leaders
- Barter arrangements
- Gross versus net accounting
- Revenue from sale of rights
- Tax issues pertaining to the M&E industry
- Regulatory updates
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