It basicly means the cost of purchasing films or theatre releases are not put down as an expense but as an asset in the books and only a portion of the cost is expensed each year. eg 30% 1st year; 20% next year;15% year after and so on until zeroed at end of rights bought. problem is you can end up with a lot of worthless film rights that are down as expensive assets on your balance sheet. eg beware of asset values on balance sheet.
