'Finance And Accounting In The Media Industry Accounting Essay\r'

'Media and delight includes a assortment of merchandises that entertains or keeps informed a day-to-day consumer. The industry is segmented into radio set, telecasting, wireless give out medium, etc. The competition in the media and enjoyment innumerable is increasing 24 hours by twenty-four hours. To be on the top or even to coda in this extremely competitory market sensation has to be redressfully efficient in construction offing the information governances. pay and AccountingRelationship to Accounting: There is unfeignedly sm perpetu all t superannuatedyy(prenominal) deflexion between finance and accounting. two autumn under the legal power of chief(prenominal) fiscal officer who uses a peculiar MIS to lock the mantled of both.\r\nThe difference lies in the sense that in finance the intent is to maximise the net income whereas the intent of accounting is score range backing so that a rump for tax tax income sweetener pay is fain.\r\nA fiscal director an alyses the natural information ( provided by the accountant about the company ‘s yesteryear, present and future ) as inputs to MIS for doing of import terminations.\r\nAccounting is non concerned with laboured silver flows. It is merely based on the recognized withdraw ins when sale occurs. Finance is merely concerned to heavily currency flows. The magnitude, timing and hazard of substantial currency flows be the focal point of finance director.\r\nFinance involves determination doing under unsure conditions and is concerned with future whereas accounting is concerned with the past records.WHY MIS IS USED?ALarge organisations go by a batch of information. This aggregation of informations bottom non be of any usage if it is non streamlined so that informations stand be retrieved easy.\r\nMIS would assist in commanding, tracking and observe of informations.\r\nSegregation of informations into faculties would ensue in faster determination devising.\r\nWould assi st in traveling paper free.\r\n economic consumption of MIS would guarantee the consequence as per the outlook and psychoanalysis of informations would be through with(p) easy. p only FOR FINANCE IN MEDIA AND ENTERTAINMENThypertext maneuver protocol: //www.sap.com/global/images/tce/spacer.gif\r\n reliance Mediaworks uses tucker out for functioning its fiscal blood lines. SAP for Media provides trim solutions to maintain up with rapid alterations driven by the Internet, on-line publication, and digital broadcast medium.\r\nLicense acquisition and special royalties †Reports on accurate royalty statements atomic number 18 prepargond utilizing SAP.\r\nCore accounting and coverage capablenesss\r\nFiscal planning concatenation flush\r\nTreasury Management\r\n overlap services\r\nSupply Chain ManagementRELIANCE MEDIAWORKS fellowship profile\r\nIn 2005 reliance ventured into this immeasurable and speedily adopted the criterions necessitate to last in this market. The twelv emonth 2005 saw the admission of impertinently participants across all sections of the E & A ; M industry. cartel made its manner into amusement by purchasing out ‘Adlabs ‘ and besides acquired a wireless station cognize as defective FM 92.7after command for 50 FM wireless Stationss across with aggregative commands of over INR 1.5 pen nibion. In this M & A ; E industry one understructure non bury the function of finance and accounting in the success way of these companies. Finance and accounting should be really efficient so that there ar no statistical errors/delays. The presence of trust mediaworks is matt-up in Film Services: Motion hear Processing and DI ; Visual Effects ; Film riposte and image sweetening ; Digital Mastering: Studios and Equipment leases with installations located at US and India.\r\nMost companies that fail in this industry have no or hold a weak information system for finance and accounting system. Finance holds the key for co mpany ‘s success. Reliance Media works adopted a really skinny MIS every arcsecond shortly as it entered the infinite. It implemented a ‘SAP ‘ made MIS and rapidly got the positive consequences of utilizing it.\r\nUse of SAP in Reliance Mediaworks\r\nuse for accounting intents.\r\nUsed for revenue sweetener intents.\r\nUsed for organizing general legers.\r\nKeeping collectible and receivable histories.\r\nBesides apply for computation of miscellaneous ratios and analyzing them.\r\nUsed for preparation of one-year and quarterly studies.\r\nUsed for puting up a fixed budget.AccountingFiscal accounting consists of: â€\r\n global ledger †Sap helps in pull offing a general leger for the company.\r\nGeneral leger keeps an storey of the assets, grosss, expenditures and the liabilities of the company. At the bosom of the Financials faculty, the General rule book essential automates the compound of all your fiscal information and posting to your historie s †supplying the terminal point for all point information in the system. From the General Ledger all the cardinal counseling studies of your concern ‘ are generated, including the labyrinthine sense sheet, gross statement, trading history and test balance. citywide bore down capablenesss and graphical coverage makes joke designation and declaration simple in the extreme. The General Ledger shops information on all of your histories, including all minutess †supplying the ability to update work-in advancement, assembly line values, foreign currency fluctuations, de pungencyors and creditors, so that an accurate copy of the concern ‘ fiscal state of affairs is ever presented. Flexibility is provided in the set up of your chart of histories, which can be standard of customised to accommodate the completely demands of you concern. Full integrating from the full Prism system ensures the General Ledger presents dependable, accurate and timely direction inform ation.\r\nTreasury Management of Assetss\r\nReliance has a weaken faculty for the intent of exchequer direction.\r\nThis faculty forever manages the assets and the investings that have been made by the company.\r\nInvestings\r\nReliance Mediaworks is invested in many bonds and common financess. The list of these investings every bit good as such separate investings is retained by SAP. New investings to be made are besides analysed by the MIS. A proviso for fall is made to recognize a diminution, other than impermanent, in the value of extensive-run investings and is determined individually for for each one single investing.\r\nFixed assets and depreciation / amortization\r\n genuine assets\r\nAssetss that can be equated in solid grounds of money are known as touchable assets. get downs incurred for up maintaining of the assets are taken into history. Depreciation on fixed assets is provided on the consecutive line method, .\r\n bell of movie rights comprises overlord purcha se monetary value / minimal warrant. Cost is ascertained on specific designation footing where possible. In instance multiple movies / rights are acquired for a amalgamate sum, cost is allocated to each movie / right based on direction ‘s opera hat estimations.\r\nThe single movie prognosis method is used to amortize the cost of movie rights acquired. Under this method, be are amortised in the proportion that gross grosss gain bear to direction ‘s estimation of the spotless gross grosss expected to be received. If estimations of the entire grosss and other events or alterations in fortunes indicate that the realisable value of a right is less than its unamortised cost, a press release is prize for the sur summation of unamortised cost over the movie right ‘s realisable value.\r\nLiabilitiess illustrations of liability histories include histories collectible and long term debt.\r\nGross\r\nGross is recognised to the consequence that it is likely that the econ omic benefits forget flux to the Company and the gross can be faithfully measured.\r\n advertising / sponsorship gross\r\nReliance gene order its grosss from advertizements and sponsorships that it offers to assorted companies. Large frequency modulation every bit good as some other subordinates of ‘Reliance Mediaworks ‘ like the ‘Adlabs ‘ generates grosss through advertisement offerings.\r\nFilm achievement and think income\r\nThe twenty-four hours the movie rights are sold, the income/revenue from movie ware is registered in the book of histories.\r\nIncome from movie distribution action\r\nDistribution rights for a movie produced by Reliance Mediaworks, abroad rights, picture, music or orbiter rights are sold and the grosss are registered by SAP.\r\nFilm production services\r\nGross from treating / printing of cinematographic movies is recognised upon completion of the related processing / printing.\r\nTheatrical exhibition and related income\r\nGros ss are besides generated by the sale of tickets at Big Cinemas. The amusement revenue sweetening is exempted from the gross.\r\n refer income / income from movie funding\r\nGrosss may besides be generated from financing a peculiar movie and so finally purchasing the movie.\r\nForeign currency minutess\r\nimputable to operations in assorted states, Reliance has the grosss in assorted currencies which is converted into rupees at the terminal of the twelvemonth. The difference in exchange rates may do extra gross for the company.\r\nExpense/Cost\r\nExpense or cost can specify as escapes from the company.\r\nPersonal costs\r\nWages, rewards, fillips, PPF, staff public assistant disbursals\r\nOperational costs\r\nAdvertisement, bank charges, rent, insurance, labor charges, loss on sale, bad debts, printing and communicating, other assorted disbursals.\r\nOther costs include involvement remuneration on the loans, fiscal charges etc.\r\nReceivable accounts- : imbibe offing a list of re ceivable histories can be really boring if done manual(a)ly. This job is solved utilizing SAP which records and manages such histories. The Accounts Receivable destiny of the Prism Financials faculty reveals a 360A° position of gross revenues public presentation †the footing for accurate and sound decision-making. Histories Receivable shops all lymph node information, footings, minutess and balances, streamlining dayto- twenty-four hours disposal. It provides direction with full and accurate graphical analysis, projections of gross revenues, grosss and hard currency flow. Credit control installations with comprehensive diary notes and gross revenues history facilitate easy client direction. Full integrating is provided from Histories Receivable to the General Ledger and Cash Book constituent(prenominal)s of the Financials faculty, every bit good as the Job Costing and Inventory faculties on a existent clip footing.\r\nCollectible accounts- : entirely as we have receiva ble histories to enter the income so besides a record should be maintain for the outgoing payments that are to be made.\r\nWith the Histories Collectible constituent of the Prism Financials faculty you ‘ll accomplish efficiencies throughout your bill and payment procedure. By hive awaying all your provider information, minutess and balances, and supplying elaborate analysis of your purchases, Accounts Payable will turn out an priceless tool at bottom your histories section. Staff can automatically make payment tallies and print computerised cheques and remittals, in add-on to leting multiple currencies by creditor. Extensive graphical coverage on all disbursals incurred provides direction with critical determination doing information.\r\nTaxation- : Calculation of revenue enhancements ( gross revenues and purchases ) and coverage of the same is easy done utilizing SAP.\r\nIncome-tax disbursal comprises current revenue enhancement disbursal computed in conformity with the rel evant commissariats of the Income revenue enhancement Act, 1961 and deferred revenue enhancement charge or recognition.\r\nDeferred revenue enhancement charge or recognition and the check deferred revenue enhancement liability or plus is recognised for clocking differences between the net incomes / losingss offered for income revenue enhancements and net incomes / losingss as per the fiscal statements. Deferred revenue enhancement assets and liabilities are measured utilizing the revenue enhancement rates and revenue enhancement Torahs that have been enacted or substantively enacted at the balance sheet day of the month.\r\nEntertainment revenue enhancement is besides levied as a contour of revenue enhancement.\r\nAccrual accounting- : Accrual means first appearance gross or cost every bit shortly as they are earned and non clutch for the clip when they would be settled. SAP helps in pull offing collectible and receivable histories harmonizing to accrual accounting.Benifits to Re liance MediaworksThe operating costs have reduced and the talent has been increased thereby increasing the entrance royalties.\r\nThe relations and communicating charges have gone down drastically thereby increasing the net income borders for the company.\r\nThe cost of integrating with finance and accounting direction has cut pop and has resulted in incremental gross for the company.\r\nReplacing manual accounting with the new system has improved the transparentness and simpleness of pull offing histories.\r\nVersion: SAP crystal Reports\r\nEditions: SAP watch crystal Reports comes in a individual edition that is the feature equivalent of the old Developer Edition. SAP Crystal Reports Dashboard Design clunk is a soft package of SAP Crystal Reports and SAP Crystal Dashboard Desing ( once known as Xcelsius Engage ) .\r\nDatas beginnings: Native, ODBC, OLE DB, and JDBC connectivity to relational, OLAP, web services, XML, and enterprise informations beginnings, and new salesforc e.com driver.\r\nLicense theoretical account: Licensed per named substance abuser\r\nLanguages: English, Gallic, German, Italian, Spanish, Portuguese ( Brazilian ) , Dutch, Swedish, Russian, Simplified Chinese, Traditional Chinese, Japanese, Korean, Polish, Norwegian, Thai, Czech, and FinnishSystem RequirementsDisk infinite: 300 MB available difficult laggard infinite, 600 MB recommended with SAP Crystal Reports, version for optic Studio.NET\r\nOperating systems: Microsoft Windows 7, Windows Vista, Windows XP with Service Pack ( SP ) 2, Windows Server 2003 with SP1, or subsequently\r\nIntegrated development environments: SAP Crystal Reports, version for Ocular Studio 2008, 2005, and 2003\r\nBrassy run on: Embedded Flash objects can be viewed with the.NET Winform spectator, .Net Webform spectator, umber DHTML spectator, SAP Crystal Reports spectator, and exported PDF files.\r\n'