06 Jul Section 4 of the body: Analysis of inventories in the movie
Section 4 of the body: Analysis of inventories in the movie industry. To our surprise, movie studios that seem to belong to the service sector of the economy do have inventories on their balance sheets. You will use the articles, the authoritative guidance and a company 10-K to identify these inventories. You are then expected to refer specific Topics of the Accounting Codification to obtain the relevant authoritative guidance that determines how movie studios should account for these inventory items. You should then illustrate your point by referring to the example of a specific movie studio. Look up a company, obtain their most recent 10-K, and from the section “Notes to the Financial Statements”, study how they account for inventory.
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