Hollywood accounting. None of them make a “profit” because they’re taxed on profits. Now it’s possible that they really are losing 180 million (a lot of startups like uber coast on investors with the assumption they’ll turn a profit at some point) but I wouldn’t take their word at face value.
Spotify is a publicly traded company. Their financial reports are required to be audited every single year. They really are losing money. There’s no way around that.
The studios, most of which are also publicly traded, report billions of dollars in profit every year. Hollywood accounting is about using shell companies to move money around (back to the main studio) while ensuring that nobody ever gets paid out on the profits of the movie by the LLC they set up to produce the movie.
I finally got out of accounting. It’s really hard to commit fraud at any scale when you’re a publicly traded and audited company. People are gonna call bullshit on that but I’m serious. I would be in favor of requiring every “small business” to be audited on a regular basis because I don’t know the exact percentage but I would testify in front of Congress right now that easily over 50% of all the small business clients I ever had were committing fraud somewhere.
Hollywood accounting. None of them make a “profit” because they’re taxed on profits. Now it’s possible that they really are losing 180 million (a lot of startups like uber coast on investors with the assumption they’ll turn a profit at some point) but I wouldn’t take their word at face value.
Spotify is a publicly traded company. Their financial reports are required to be audited every single year. They really are losing money. There’s no way around that.
The studios, most of which are also publicly traded, report billions of dollars in profit every year. Hollywood accounting is about using shell companies to move money around (back to the main studio) while ensuring that nobody ever gets paid out on the profits of the movie by the LLC they set up to produce the movie.
I finally got out of accounting. It’s really hard to commit fraud at any scale when you’re a publicly traded and audited company. People are gonna call bullshit on that but I’m serious. I would be in favor of requiring every “small business” to be audited on a regular basis because I don’t know the exact percentage but I would testify in front of Congress right now that easily over 50% of all the small business clients I ever had were committing fraud somewhere.