Response to the following problem:
Dreamworks Animation SKG Inc. shows "film costs" as an asset on its balance sheet. In the notes to its financial statements, the following disclosure was made:
|
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December 31,
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Film Costs (in thousands)
|
2010
|
2009
|
|
In release:
|
|
|
|
Animated feature film
|
$328,174
|
$204,598
|
|
Television specials
|
56,689
|
28,511
|
|
In production:
|
|
|
|
Animated feature film
|
341,319
|
428,344
|
|
Television specials
|
14,359
|
13,145
|
|
In development
|
32,127
|
21,365
|
|
Total film costs
|
$772,668
|
$695,963
|
a. Interpret the film cost asset categories.
b. How are these classifications similar or dissimilar to the inventory classifications used in a manufacturing firm?