Amortisation of cost of production/cost of acquiring distribution rights of films - Assessments of film producers/distributors - General guidelines for allowance thereof

New Guidelines for Film Cost Amortization: Provisional Assessments and Adjustments Based on Estimated Receipts and Exploitation Periods.

The circular provides guidelines on the amortization of production and distribution costs for film producers and distributors. It suggests provisional assessments based on estimated receipts, with adjustments after the exploitation period. Producers can deduct the entire production cost in the release year if the film is fully exploited. For distributors, costs are allowed based on collections during the exploitation period. The circular also categorizes films by production cost, with different amortization rates for each class. Pending assessments should follow these guidelines, and completed assessments may be reconsidered if appeals are pending.