This is for a couple of reasons, but one of these reasons is that when the project gets wrapped up, they don’t like to be left with a lot of saleable assets. It takes time & additional money to catalog & sell these assets off, this then has complex implications with tax. You may, as part of your role as a coordinator or supervisor, be asked to keep a track of all the assets, so we wanted to write a quick article about what an asset actually is!
A sellable asset in business refers to any tangible or intangible item that a company owns and can potentially sell to generate cash or realize value. These assets can be essential for getting the project made but can represent excess resources that become a burden later on. Sellable assets can include various categories:
1.Tangible Assets: These are physical assets that have a measurable value and can be sold in the market. Examples within Film & TV include equipment (Hard Drives or other) or inventory (such as stationary).
2. Intangible Assets: These are non-physical assets that hold value for a business but do not have a physical presence. Examples include licenses for software purchased for the production. While intangible assets may not be sold as easily as tangible assets, they can be licensed or transferred to other entities for a consideration, providing residual value.
The ability to identify and leverage saleable assets is important for projects to optimize their financial position. However, it is crucial for projects to assess the impact of selling these assets on their tax computations & final audit. Strategic management of saleable assets can help production companies maintain a healthy balance sheet and ensure the next production in line can benefit from the initial investment.
We are Post Super Ltd , your ultimate destination for all things post-production management.