Films
Tenon Audit has a London based team that has been operating in the film sector since the early 1990s. It offers specialist audit services to a wide range of clients including film studios (ranging from Hollywood majors to smaller UK and European independents), special effects and postproduction companies, co-production entities and sale and leaseback partnerships. The services provided include:
- > Statutory audits of film production companies, film investment companies and sale and leaseback partnerships.
- > Audit reports on the certified costs of film production.
- > Reports on the creative and financial components of co-productions structured under one of the seven bilateral co-production treaties or the European Convention.
- > Accountant’s reports to the Department of Culture, Media and Sport certifying that films meet the minimum requirements to qualify as British under Schedule 1 of the Films Act 1985.
- > Reports to film distributors regarding the proper calculation and completeness of exploitation income.
Production cost reporting, whether it be for Schedule 1 films or co-productions, is necessary to allow producers to obtain British film certification, enabling them to access the valuable tax breaks available to films in the UK. Such tax breaks can provide net savings of 9-15% of the film budget, depending on the type of film and the allowance claimed.
Tenon Audit can be involved at every stage of a film’s development, from initial assessment of the budget and structure to interim assurance reporting, through to the final audit or accountant’s report. At the final stage, Tenon Audit will assist, if required, with the preparation of the cost statements, analyses and application forms necessary for British film certification.
Tenon Audit offers training in this area and in the past has presented seminars to production accountants, film industry executives, legal advisers and bankers.
