Work in progress represents direct costs incurred in respect of film and television productions which have not reached the stage at which the related income can be recognised.
Work in progress is stated at the lower of cost and estimated recoverable amount. Cost comprises costs directly attributable to the production of the film, including cast, crew, production labour, location costs, equipment hire, transport, catering, insurance, set design, costumes and other production-specific expenditure.
Work in progress is reviewed for impairment at each reporting date and written down where the estimated recoverable amount is lower than cost.
Upon completion and commencement of commercial exploitation, the costs capitalised within work in progress are transferred to intangible film assets and amortised over the period in which revenues are expected to be earned from the production.