Hollywood accounting

English

Noun

Hollywood accounting (uncountable)

1. (business) A form of creative accounting practiced by the entertainment industry that reduces reported profit in order to reduce owed royalties and taxes.

   Synonym: Hollywood bookkeeping

   • 2007, Johnnie L. Roberts, “Hollywood’s New Moguls Shake Things Up”, in Newsweek:

     Supposedly, it also avoids “Hollywood accounting,” whereby a film generates a fortune in ticket sales but never shows a profit for the producer who sank millions into it.