... being evaluated and adjusted. The third alternative called for adopting the policy employed by the movie industry, which forecasts revenues of a production and then amortizes pre-production costs based on a ratio of current revenues to forecasted revenues for the period. The final, and most conservative approach would involve simply expensing all pre-production costs as they are incurred. The recommendation presented to Mr. Clark was a hybrid of the proposed alternatives and would treat pre-production costs differently based on whether the show being developed was a reproduction, restoration, origination, or a touring production. In this case the current policy would be used for reproductions and restorations, originations would be expensed as incurred, and touring productions would employ the movie industry approach. Table of Contents Role 3 Users and Objectives 3 Constraints 4 The Issue 5 Alternatives 5 Do Not Change Policy 5 More Transparent Policy 6 Adopt Film Industry's Policy 7 Expense All Pre-production Costs 8 Recommendations 8 Appendix A: Board of Directors 11 Appendix B: CICA Hand Book 3450.21 12 Works Cited 13 Role To advise Phillip Clark, ...

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