| Commentary

355 Distribution expenses

| Commentary

355 Distribution expenses

Depending on the type of distribution agreement, the expenses of a distributor may be deducted out of the producer’s share (as in the net agreement), out of the distributor's share (as in the gross agreement), or ‘off the top’ (as in an adjusted agreement). However the distribution expenses are recovered, it is in the interests of the producer to determine that these expenses relate only to actual direct costs incurred by the distributor on the film in question, and do not include any overhead­type items or any expenses payable to companies associated with the distributor, except where

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