Accounting treatment for film tax credit

Accounting treatment for film tax credit

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I have a client company that produced a British film and has received film tax credit from the Revenue. How is this accounted for in the books of the company. Is this shown as income or reduction in the cost of the film. Any comments would be much appreciated.

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By Steve Kesby
22nd Nov 2011 10:32

It can be either...

... you need to account for it according to SSAP4 I'd say.  There are two permitted treatments, but both essentially match the income with the costs.

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