Can you help me to do Memo with this information. (facts, Issue, Analysis and conclusion) Please

Background

Luke Woods runs a hedge fund based in New York City for which you serve as

CFO. He has recently expressed an interest in getting into the film financing

business but does not understand the accounting for film costs. Before investing,

he would like you to prepare memo that describes accounting for costs in film

production. Luke is fairly astute in the world of accounting and finance and thus a

technical memo with citations to guidance would be entirely appropriate.

Obtain and read ASC 926-20, ASC 926-720, and PwC Perspectives Filmed

Entertainment: Cost Capitalization, Amortization and Impairment.

Required

Prepare memo to Mr. Woods that explains the following:

Why is there a challenge in applying the "matching" principle (matching

revenue and the related expense) in film production?

What different types of costs are incurred in the movie making business?

If costs are not expensed when incurred, what is the method by which those

costs are recognized? Be sure and describe the determinants of the amortization

and how it is calculated. Explain how this satisfies the matching principle.

Explain the three year rule including any exceptions.

Other Assignment Guidance

1" margins, 12-point font in memo format.