Welcome to the Media Industry Accounting Group
Our Media Industry Accounting Group (MIAG) is designed to help our clients make sense of the complex and changing world of accounting regulation, keeping you abreast of changes in IFRS accounting policies and the implications these will have for Entertainment & Media companies. Our first publication explores some of the accounting complexities related to joint ventures which can arise for media companies both under existing IFRS and in the future.
More CEOs in Entertainment & Media (E&M) than in any other sector expect to form a new strategic alliance or joint venture in the coming year. And 57% - compared to 39% across all industries - expect the majority of their innovations to be co-developed with partners outside their organisations. This forecast increase in the scale and scope of joint ventures will expose more media companies to accounting complexities such as distinguishing between supplier arrangements, jointly controlled operations and jointly controlled entities; the treatment of net liabilities in a joint venture; retranslation of foreign joint ventures; and the contribution of assets and knowledge into a joint venture.
This paper explains the treatment of these and other items under the current standard IAS 31 Interests in joint ventures and also considers how the treatment might change under IFRS 11 Joint arrangements which is applicable for periods beginning on or after 1 January 2013.
Click here to download your copy now so you can begin to plan for your future collaborations.