Globally, within the Media and Entertainment industry, there is a strong awareness of accounting and financial reporting, which is backed by specific guidance for various segments of the industry. In India, while there is general guidance available to address some of the accounting and financial reporting issues, there is a greater need for guidance on industry specific issues.
Ernst and Young asserts that it recognizes the importance of the impact of these issues on financial reporting and that this particular publication has been prepared with a view to elucidate and encapsulate the business issues experienced by the industry and its impact on accounting and financial reporting. Which is why, you now have accounting and reference guide for media and entertainment companies.
Says Farokh T Balsara, Industry leader, Media & Entertainment Practice, "The global media and entertainment industry is poised for solid growth. Industry analysts are optimistic thanks to a stronger global economic outlook and the rapid development of new distribution platforms such as broadband, iTV, DTH, that will boost revenues in more mature sectors and booming markets in the Asia Pacific region. The Indian economy has been seeing robust and sustained growth since the last three years. Technological advancements are also opening up new markets/revenue streams for players in this industry which is impacting accounting and financial reporting."
He goes on, "In this publication, we have made an attempt to harmonize the accounting principles and practices followed by the industry. However the industry segments are at different stages of maturity and are posed with generic issues and segment specific issues. Therefore there is still a need for guidance on issues experienced by the segments and the industry at large, which are not specifically addressed in the accounting literature in India."
Meanwhile Govind Ahuja, Senior Manager, S.R Batliboi & Associates asserts, "The interpretation of accounting standards is gaining more importance by the day. Benchmarking of accounting practices adopted by global players in connection with Indian companies and the scenario inherent in the country, is the backbone behind this kind of literature. In this publication, we have made an attempt to provide guidance on accounting and financial reporting issues affecting various segments of the entertainment and media industry. We would like to emphasize that this publication is by no means an exhaustive study of accounting in the industry. It does not purport to provide comprehensive accounting analysis nor offer any accounting advice."
Some important areas which the Accounting and Reference guide looks at includes gross versus net reporting of revenue, barter transactions, copyrights -acquisition and amortization, Circulation and Subscription revenues in publishing and click revenues on the internet.