Posted by Zunish on .
A music producing firm holds the copyright over several songs which have just been recorded by a popular singer. Based on market research conducted by a consulting agency, the producer expects to sell 50,000 CDs for $20 each. The accountant of the firm is unsure whether the copyright meets the criteria for definition and recognition as an asset.
Outline your advice to the accountant, under the following independent scenarios.
a The producer will be selling the CDs in a country where there are numerous pirate operators and it is difficult to enforce copyright laws.
b In the past 5 years, this particular singer has recorded 5 top-10 hits, while 3 of her songs have been complete failures.