Hello everyone,
I am currently doing an audit of a film production company. The company has taken a overdraft from a bank to run a business. Now Expenses incurred for making a movie (all direct and indirect) are considered as WIP for that company till the time movie is completed and gets censor certificate.
My query is , as that overdraft has been taken for producing a movie , its an indirect expense for the company, will it be included in WIP calculation?
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Wip for a film production company
Replies (1)
Hi Mrunmeya,
U can included the interest on OD etc in WIP, but u can recognise the profit on presumptive method. Further the indiret expenses u can take as prorata basis i.e., 50% - 50%
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