How does the creative accounting work in 'the producers'?

They oversold percentages to investors. Let's put numbers to this to make it clearer. (I'm making up all these numbers, they do not come from the show. They are just examples.) Say that The Producers are offering shares in their production. read more

Say that The Producers are offering shares in their production. For an investment of $10k, you get 1% of the profits of the show. For a normal play, they would get 50 investors and have $500k to put into the production of the play. read more

Creative accounting is a euphemism referring to accounting practices that may follow the letter of the rules of standard accounting practices, but deviate from the spirit of those rules. read more

handle the issue of creative accounting. It is not that creative accounting solutions are always wrong. It is the intent and the magnitude of the disclosure which determines its true nature and justification. KeyWords: Creative Accounting, Earnings management, Corporate Governance 1. Introduction Subject of Creative Accounting is normally portrayed maligned and negative act. read more

Creative accounting capitalizes on loopholes in the accounting standards to falsely portray a better image of the company. Although creative accounting practices are legal, the loopholes they exploit are often reformed to prevent such behaviors. read more